Hostess Brands is close to announcing that it has picked two investment firms — C. Dean Metropoulos & Co. and Apollo Global Management — as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation.
A deal for roughly $400 million, part of Hostess Brands Inc’s bankruptcy process, could be announced as soon as Tuesday, said one of the sources, who declined to be identified as the discussions are not public.
The so-called stalking horse bid by the private equity firms would serve as the baseline offer for the business, which also includes Dolly Madison bread and Hostess cupcakes. It could still be topped by others at an auction.A judge would have to approve any final sale.
After years of management turmoil and turnover, Hostess declared it was going out of business and selling its brands in November.
Earlier this month, Hostess chose a $390 million offer by Flowers Foods, maker of Tastykake products, as the stalking horse bid for several brands including Wonder bread.