Skip to comments.Hostess Brands confirms investment firms' $410 million offer is lead bid for Twinkies...
Posted on 02/01/2013 1:33:48 PM PST by Red Badger
NEW YORK Hostess has picked a lead bidder for its famous Twinkies.
The bankrupt Irving company said late Wednesday that it has selected a joint offer from two investment firms C. Dean Metropoulos & Co. and Apollo Global Management LLC as the lead bid for its Twinkies and other snack cakes.
Hostess says the two are offering to pay $410 million for the snack-cake business and five bakeries.
The "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.
After years of management turmoil and turnover, Hostess declared in November it was going out of business and selling its brands. The company already announced separate lead bidders for its other brands including Drake's cakes and Wonder bread.
The offer sets the stage for the return of Twinkies and other Hostess cakes to supermarket shelves under new management, which could mean stepped up marketing for the spongy yellow cakes with mysterious cream filling. Although supermarkets saw a run on Twinkies when news hit in November that Hostess was going out of business, the company's sales had been declining amid changing tastes and a lack of investment in marketing.
In bankruptcy proceedings, Hostess has stressed that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.
Still, Hostess cakes generated significant sales to the end. For its final year, Twinkies pulled in about $76.2 million, according to Hostess. Hostess Donuts brought in $384.6 million and CupCakes brought in $138.1 million.
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Not a big fan of Twinkies but I love their cupcakes. Fortunately they’re still available in Canada, made under licence by Saputo in Montréal.
BTW given their shelf life this may be a good topic for SunkenCiv ;)
Cupcakes - so jealous. Also, I need a cherry pie.
None can replace Tastykake.
I was a huge fan of the cherry pies way back when.But on doctor's orders I gave up things like that for a long time.Then,in a moment of weakness,I bought a couple a year or so ago.The quality had plummeted.....didn't enjoy the "new" ones at all.
You know, I think I agree with you. It’s kind of like Kraft Macaroni and Cheese - it’s an emotional attachment, LOL.
Wonder what they're worth now? I expect the price to crash when word gets out they're back in production (maybe it has already).
They will go the way of Beanie-Babies............
Twinkies I can do without. Hostess Fruit Pies on the othe rhand, especially the Lemon ones, totally rocked!
From thr link:
Hostess Brands Inc. has been filing the bids for its brands in stages. Flowers Foods Inc., which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess’ major bread brands, including Wonder.
It’s a win-win for whatever buyout gets the Hostess brand.
A MASSIVE amount of their revenues come from government assistance: EBT “Snap” cards and other food programs, that continue to expand by billions of $$$$ under the Obama regime.
“... wonder what they’re worth now?”
For kicks and grins, I checked out Ebay. An unopened box goes from $9 to $20.
I cleaned out my local grocery store - got my Twinkies dirt cheap, too.
Also got sick of the space they were taking up at the house, so Twinkies were shipped out with family Christmas gifts.
It was the surprise hit gift of the season
I love the soft texture of Wonder Bread. Almost all the white breads are now whole grain and are as hard as a rock. Ok maybe not quite as hard as a rock but it is like eating stale bread.
Be real interesting to see what happens with the two unions, the idiots that caused this in the first place. The contracts are still in effect, I believe...but there is no way that any new buyer would touch this without first renegotiating the contracts..
The contracts are with Hostess, the corporation. The buyers aren't buying the corporation, they're buying the assets (trademarks, recipes, etc.). So the buyer will not be subject to the union contracts.