Edition: Global Global Select Region
Email: Passwd: or sign up free
One News Page
One News Page > Markets > Hostess Sale OK'd by Court; Twinkies May Be Back by Summer
Open news article

Hostess Sale OK'd by Court; Twinkies May Be Back by Summer

DailyFinance
Tuesday, 19 March 2013

Hostess Sale OK'd by Court; Twinkies May Be Back by SummerFiled under: Bankruptcy, Mergers & Acquisitions, Consumer Goods, Food & Beverage, Food

*(Brennan Linsley/AP)*

By CANDICE CHOI

NEW YORK -- A bankruptcy judge has approved the sale of Twinkies to a pair of investment firms, one of which has said it hopes to have the cakes back on shelves by summer.

Hostess Brands Inc. is selling Twinkies, Ding Dongs, Ho Hos and other brands, to Apollo Global Management and Metropoulos & Co. for $410 million. Evan Metropoulos, a principal of the latter firm, said in an interview that he wants to have the snack cakes back on shelves by June and that the brands could benefit from new flavors and other product extensions.

"There's no mistake, we've got to move smartly, we've got to move quickly," Metropoulos said.

He also said that comedians Will Farrell and Zack Galifianakis are at the top of his "wish list" for potential pitchmen. But he doesn't plan on formally approaching anyone about marketing deals until after the sale closes in coming weeks.

Metropoulos, which owns Pabst beer, has already used Farrell in its ads. Apollo's investments include the fast-food chains Hardee's and Carl's Jr., which is known for indulgent burgers and splashy ads starring scantily clad women.

Judge Robert Drain of the U.S. Bankruptcy Court of the Southern District of New York also approved the sale of Wonder bread to Flowers Foods, which makes Tastykakes and other breads. Flowers, based in Thomasville, Ga., would also get Nature's Pride, Butternut, Home Pride and Merita as part of the $360 million deal.

Hostess has said the Justice Department is reviewing that sale.

The sale of Beefsteak to Grupo Bimbo was also approved. Grupo Bimbo makes Entenmann's cakes and Thomas' English muffins and is paying $31.9 million for the regional bread brand.

A separate hearing is scheduled for April 9 to approve the sale of Drake's cakes, which include Devil Dogs and Yodels. Hostess picked McKee Foods, the maker of Little Debbie snack cakes, as the buyer for those brands at $27.5 million.
Sponsored LinksTaken together, a Hostess spokesman said 29 of the bankrupt company's 36 bakeries were sold as part of the transactions. It will be up to the new owners whether to hire back the thousands of workers who lost their jobs when the company went out of business.

In a statement, the company's bakers union said it shared the enthusiasm exhibited by the new owners to bring Hostess brands back to shelves quickly.

The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said it believed "our highly motivated and skilled workforce will serve as indispensable partners in the seamless re-opening of factories."

Hostess closed its factories in late November following a strike by the union. The company had been struggling financially for years.
 

Permalink | Email this | Linking Blogs | Comments
0
shares
Share on FacebookShare on Twitter Comment
 
Source: Newsy.com - on March 13, 2013

News video: Twinkies and Other Hostess Snacks Could be Back by Summer

Twinkies and Other Hostess Snacks Could be Back by Summer

Private equity firms Apollo Global Management and Metropoulos & Co. bought Hostess for $410M, saying they plan to keep the brands going.

You Might Like


Other recent news in Markets

UKRAINE, China Tensions Depress Global Stock MarketsCHINA growth slows but beats estimates, Ukraine heats up
NZDUSD takes a hit on disappointing INFLATION figures – eyes on China's data dumpUkraine Reality Ignored As Stocks Close At Highs On Hopes of More JAPAN Easing
Mid-Morning Market Update: Markets Gain; JOHNSON & JOHNSON Profit Beats Street ViewThe "Shocking" Buying Spree Of AMERICA's Mysterious Third Largest Treasury Holder Ramps Higher
CITY FOCUS: GOOGLE buys drone company Titan AerospaceFive Star Stock WATCH: Freeport-McMoran
Tuesday’s Top HEALTH CARE Stories: Johnson & Johnson, Teva, Mylan, and DynavaxMore Concerning Statistics About TWITTER's User Base

Twitter


Comments

comments powered by Disqus

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2014 One News Page Ltd. All Rights Reserved.  |  About us  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
One News Page - Top Headlines RSS Feed RSS  |  News for my Website  |  Free news search widget  |  Advertise  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |  One News Page on Facebook LIKE us on Facebook  One News Page on Twitter FOLLOW us on Twitter  One News Page on Google+ FIND us on Google+



Bullet: One News Page official news app for iPhone Bullet: Our news app for iPhone
-