TribLIVE

| News


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Pabst parent among likely bidders for Twinkies brand

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

Editors Picks Photo Galleries

By The Los Angeles Times
Tuesday, Jan. 29, 2013, 1:01 p.m.
 

The dismantling of Hostess Brands Inc. continued this week as bidders, including the owner of Pabst Brewing Co., emerged to buy the bankrupt company's bread and cake brands.

C. Dean Metropoulos & Co., the private equity firm that owns the popular Pabst beer label, is one of the likely stalking horse bidders for Hostess cake brands such as Twinkies, Ho Hos, Ding Dongs and CupCakes, according to a person close to the deal.

Metropoulos would be joined by Apollo Global Management, a private equity firm that owns major companies such as Carl's Jr. parent CKE, the source said.

The stalking horse bidder sets the auction standard for other prospective buyers. Hostess' cake brands, with their long history and cult appeal, are viewed as the crown jewel in the company's portfolio of assets.

Hostess, based in Irving, Texas, filed for Chapter 11 bankruptcy a year ago. In November, a federal bankruptcy judge gave Hostess the go-ahead to wind down after failed negotiations with its striking bakers union.

Also this week, two other firms offered to buy some of Hostess' bread brands and the company's Drake's snack segment.

United States Bakery Inc., based in Portland, Ore., offered $28.9 million on Monday to buy Sweetheart, Eddy's and other bread brands from Hostess.

McKee Foods Corp. of Tennessee, which makes Little Debbie snacks, said it wants to take over Drake's brands, such as Ring Dings and Yodels, for $27.5 million.

Earlier this month, Hostess agreed to sell a large chunk of its bread holdings — including Wonder and Nature's Pride — to Flowers Food for $290 million.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Stories

  1. Pirates claim Ishikawa off waivers, Marte injured
  2. Initials carved into pig in Georges Township
  3. Woman shot at Kennywood Park in ‘freak accident’
  4. Murrysville home damaged in blaze
  5. Don’t remove history’s lessons
  6. How to improve the life of an overweight cat, dog
  7. Off to Market
  8. Police: Maine man shoots off firework from top of head, dies
  9. South Fayette, Chartiers Valley schools lead security trend
  10. Life is a cabaret
  11. Ligonier’s Sunday Evening Summer Band Concert