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. Big plays cost Steelers defense in 43-19 preseason loss at Bills
  2. Happ’s strong start, Ramirez’s homer pace Pirates past Rockies
  3. Steelers notebook: Tomlin mum on Bryant suspension
  4. Rossi: Beleaguered Steelers need MVP from Big Ben
  5. Pirates notebook: Hurdle’s faith in Polanco pays off
  6. Pitt’s cancer institute marks 30 years with eye toward future
  7. Pitt star running back Conner remains grounded despite success
  8. U.S. closes in on offshore tax evasion
  9. Patience serves as virtue amid pitching prospect Glasnow’s quest for majors
  10. Shale gas violations down as DEP steps up inspections
  11. Starting 9: Pirates place renewed emphasis on nabbing base-stealers