(Photo: Reuters/Jim Young)
The Twinkies business could be saved, as Hostess Brands Inc has reported that private equity firms C. Dean Metropoulos & Co. and Apollo Global Management LLC have set a base offer of $410 million to acquire the company's snack cake brands, which will include Twinkies.
For many fans of Twinkies it was depressing news when it was announced last year that the 82 year old baking company behind the product was going out of business. However, it now appears as though Twinkies will remain on shelves as the so called stalking horse bid by the private equity firms, who are combining forces in an attempt to purchase the company, will act as a minimum offer for the business - guaranteeing a bid of at least $410 million will be made.
Although other bids could still be made and could top the current offer, even if they do not materialize, Hostess Brands Inc's five main bakeries and other equipment could be sold to Apollo and Metropoulos.
The $410 million bid will, however, not mean than any of Hostess' liabilities will transfer from the baking company to Apollo and Metropoulos.
Andy Jhawar, head of Apollo's Consumer and Food Retail Industry Group, said in a statement, "We believe the Hostess Snacks brands we agreed to acquire offer significant potential for renewed growth and expansion into additional channels of distribution."
C. Dean Metropoulos, Founder and Chief Executive Officer of Metropoulos & Co. has also said, "We are pleased to be partnered with Apollo as we seek to resurrect Hostess Snacks and return these legendary products to the American consumer."
Hostess has also said that it will not be selecting any winning bidders for the assets of its bread and snack cake businesses until the end of their various auctions.
Any sales to winning bidders will, however, still require ultimate court approval before they proceed.
Here is a video showing how to make homemade Twinkies: