Pabst parent among likely bidders for Twinkies brand
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.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Hempfield infant fights rare disease
- Penguins’ Letang leaves hospital, out with concussion
- Penguins slip past Sharks, 3-2, in shootout
- Owner of Penn Hills tombstone business pleads guilty to swindling the bereaved out of $90K
- LaBar: WrestleMania 31 one of the best ever
- With Malkin out, Penguins fall to Flyers, 4-1
- Former teachers convicted in Atlanta test scandal
- New Kensington resident looks to transform city
- Couple taken into custody after 8-hour standoff in Hempfield
- Researchers uncover details to help get GOP candidates elected
- 1 dead after car tries to ram Fort Meade gate