Twinkies never die.
Mexico’s Grupo Bimbo, Georgia-based Flowers Foods, and Switzerland’s Aryzta shared similar interests, all submitting offers by the bidding deadline. Private equity firms are also said to be interested in Hostess, but many of the same firms also submitted bids for AdvancePierre Foods at a similar price range of around $2 billion.
The maker of Ho Hos, Twinkies, and Ding Dongs once boasted revenues just shy of $1 billion before filing for Chapter 11 bankruptcy back in 2012. Today, revenues are nearly half what they used to be but sources say those close to the company think a new owner could return revenues to previous clips.
“They are making a big point about how the business still has a long way to go,” one source told the Post.
A $2 billion sale would be a nice flip for Apollo Global Management and billionaire investor C. Dean Metropoulos who bought Hostess when it was on the brink for $410 million just two years ago.
If Hostess finds a suitor it would be the freshest deal in a recent burst of big food acquisitions. Earlier this week Hormel Foods acquired Applegate Farms for around $775 million. Last year Post Holdings closed a $2.5 billion deal with Michael Foods shortly before the meat industry’s largest deal ever when Tyson Foods acquired packaged meats producer Hillshire Brands for over $8 billion.
Read the full story from the New York Post here.