Mexican buyer may say, 'Si!' to Twinkies
How do you say “Twinkies” in Spanish?
It's possible that the Hostess Brands' iconic goody will be bought by a business south of the border.
Mexico's Grupo Bimbo, the world's largest bread-baking firm, could be on the short list for acquiring some of the Texas-based Hostess' foodstuffs, according to Forbes. Grupo Bimbo isn't new to the U.S. market; it owns parts of Sara Lee, Entenmann's and Thomas' English Muffins.
Others firms that could be in the running include ConAgra and Flowers Food, the American company behind Nature Valley granola, as well as McKee Foods, baker of Little Debbie snack cakes, the Christian Science Monitor reported.
Pepperidge Farm, a division of Campbell Soup Co., also may pursue the confection, analysts told Fox Business.
The Monitor reports Bimbo has been present during bankruptcy proceedings that have haunted Hostess for a decade, in a bid to further expand its North American portfolio and pad its $4 billion net worth.
According to Forbes, Bimbo put in a low-ball bid of $580 million a few years ago. But Hostess may turn out to be a steal with a reported worth of $135 million today.
Hostess, which also makes Wonder Bread, Ding Dongs and Ho Ho's, will be in a New York bankruptcy courtroom on Monday to start the process of selling itself.
The company, weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, it's asking the court for permission to sell assets and go out of business.
Twinkies alone have brought in $68 million in revenue so far this year, which would look good to another snack maker.
“There's a huge amount of goodwill with the commercial brand name,” said John Pottow, a University of Michigan Law School professor who specializes in bankruptcy. “It's quite conceivable that they can sell the name and recipe for Twinkies to a company that wants to make them.”
Hostess said it's received inquiries about buying parts of the company. But spokesman Lance Ignon would not comment.
Analysts reported that Thomasville, Ga.-based Flowers Foods Inc. and private equity food investment firm Metropoulos & Co. are likely suitors. Metropoulos owns Pabst Brewing Co., while Flowers Foods makes Nature's Own bread, Tastykake treats and other baked goods. Messages were left for spokesmen for both companies on Sunday.
“We think there's a lot of value in the brands, and we'll certainly be trying to maximize value, both of the brands and the physical assets,” Ignon said Sunday. He said it's possible some of Hostess' bakeries will never return to operation because the industry has too much bakery capacity.
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.
- At least 3 cops shot near Colo. Planned Parenthood clinic; gunman loose
- White House fence jumper captured on lawn
- Chicago police videos of black teen McDonald’s death lack sounds; protests planned for ‘Black Friday’
- EPA works on algae rules to protect from toxins found in lakes, rivers
- Hawaii confronts dengue fever cases
- Prescription skin drug costs skyrocket
- Former police officer who was indicted found dead in Massachusetts home
- Red tape blamed for lack of domestic fish farms
- LA prostitution deterrent runs afoul of rights group
- Democrats face long odds in battle for lost congressional seats
- House Republicans call for refugee limits in spending bill