The bankrupt maker of iconic US snack Twinkies has received a joint bid from buyout firm Apollo Global Management and billionaire C Dean Metropolous to pick up its cake business.
The pair have bid up to $410m for the snack cake department according to a statement from the firms, which said they had agreed to buy the brands, five bakeries and some equipment.
Andy Jhawar, head of Apollo’s consumer and food retail industry group, said, “We believe the Hostess Snacks brands we agreed to acquire offer significant potential for renewed growth and expansion into additional channels of distribution.”
Metropolous, 66, is ranked at number 360 on the Forbes 400 list of wealthiest Americans, is chairman of Pabst Brewing Company and former chairman of Premier Foods and International Home Foods.
Hostess Brands took the step of winding down the company two months ago blaming nationwide strike action from bakers’ union BCTGM, which it said “crippled its operations at a time when the company lacked the financial resources to survive a significant labor action”.
Judge Robert Drain approved the motion after the company and the Bakery, Confectionary, Tobacco and Grain Millers Union were unable to reach an agreement during an eleventh-hour mediation.
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