US: Bimbo seen as front-runner for Hostess cake brands
Bimbo "front runner" in sale of Hostess cake business
Mexican baker Groupo Bimbo is believed to be the front-runner in the sale of Hostess Brands snack cake interests, which includes various well-known brands such as Twinkies.
Hostess put its business on the block in November, when it wound down operations and went into liquidation. The company is currently in the process of selling off its brands and assets.
According to a Reuters report, citing people familiar with the situation, Groupo Bimbo is among the leading candidates for Hostess' cake business.
Indeed, Janney analyst Jonathan Feeney said that, in his view, Bimbo are likely to be most interested in acquiring Hostess cake brands. "Grupo Bimbo, are likely more focused on Hostess's snack cake business," he suggested.
Private equity investors, such as Apollo Global Management, have also been linked to the sale.
A spokesperson for Hostess told just-food the group was, as yet, unable to reveal the identity of interested parties. However, the spokesperson added that Hostess expects to announce around five more "stalking horse" bidders.
Last week, the company named Flowers Foods the stalking horse bidder for various bread assets, including Wonder Bread.
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