Buyout house Apollo to acquire Hostess cake arm


Twinkies HostessBankrupt group Hostess Brands will sell its cake business including the Twinkies brand to buyout firms Apollo Global Management and C. Dean Metropoulos & Co after receiving no other bids.

Hostess’ lawyers said in a filing with the US bankruptcy court in White Plains, NY, that “pursuant to the bidding procedures order, no auction will be conducted and buyer is the successful bidder.”

Apollo and Metropulous made a $410m offer for the business in January for the cake business.

Other bidders had a deadline of 5PM yesterday to submit their offers.

Yesterday it was reported that Hostess’ creditor Silver Point Capital and hedge fund Hurst Capital were interested in buying its cake business.

According to a report by the New York Post, Silver Point sent a letter to the group’s bankers, expressing interest in buying all or part of the business, while Hurst secured the backing of a number of unnamed private equity firms to make a rival bid.

Texas-based Hostess Brands took the step of winding down the company three 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 labour 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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