Pabst beer owner goes after Twinkies
The famous snack cake will likely be heading to auction within weeks. Will the new owners rekindle consumer interest?
The company, along with Apollo Global Management, another private equity shop, has submitted a "stalking horse" bid of $410 million for parts of Hostess Brands' snack business, including the iconic cream-filled sponge cake.
Hostess, which has filed for bankruptcy protection, is selling all its assets after failing to reach an agreement with one of the unions representing its employees. Bankrupt companies accept "stalking horse" bids to set a base floor for auctions and prevent other bidders from lowballing a purchase price.
The bid, which also covers other Hostess brands such as Ho Hos, Zingers and Suzy Q, includes five bakeries. Other companies will be allowed to make offers on the business, and the outcome will likely be decided by a bankruptcy court.
There has been an outpouring of nostalgia for Twinkies ever since Hostess declared bankruptcy. Unfortunately, many people with fond memories of the snack treat probably haven't bought them in years. As the Associated Press notes, Twinkies brought in $76.2 million in revenue in its last year, well under the $384.6 million Hostess made from CupCakes.
Metropoulos specializes in investing in underperforming consumer brands. The firm's holdings include Pabst, North America's largest privately held brewer, Chef Boyardee pasta dishes, Ghirardelli chocolates and Pam cooking spray. Apollo Global owns CKE Restaurants, the parent company of Carl's Jr. and Hardee's fast food restaurants.
--Jonathan Berr probably likes Twinkies a little too much. Follow him on Twitter @jdberr.
More on moneyNOW
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages ended the midweek session on a flat note after spending the day inside narrow ranges. The S&P 500 hovered near the 2,000 mark for the majority of the trading day, but slumped to new lows during the last hour of action. The index then returned to its flat line, where it settled for the day. For the third day in a row, participation left a lot to be desired with just 487 million shares changing hands at the NYSE.
Equity indices opened with slim gains, ... More
More Market News
The stock rises 9% after the company reveals strong second-quarter results.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'