Private-equity firms Metropoulos & Co. and Apollo Global Management have acquired the snack cake business of Hostess Brands.
The two firms secured the unit, which includes the Twinkies brand, with a joint bid of US$410m. The private-equity firms had set the floor for the auction in January, placing a base-line offer with the units remaining subject to a competitive bidding process.
A spokesperson for the company told just-food the transaction includes the brands, five bakeries, and “certain equipment”. The deal is subject to US Bankruptcy Court approval.
Yesterday, reports emerged Hostess creditor Silver Point Capital and hedge fund Hurst Capital were interested in buying some of the US baker’s snack cake brands, including Twinkies. Neither returned comment, however.
Hostess, which last year received permission from a US bankruptcy court to wind down its business and liquidate its assets, this month sold its bread units, including Wonder, to Flowers Foods. Its Beefsteak business went to baker Grupo Bimbo.