Hostess Brands Inc. Selects Stalking Horse Bid for Majority of the Assets of Snack Cake Business, Including Iconic Twinkies®

 Hostess Brands Inc. Selects Stalking Horse Bid for Majority of the Assets of
            Snack Cake Business, Including Iconic Twinkies® Brand

- Apollo Global Management, LLC and Metropoulos & Co. Submit $410 Million
Offer

- Agreement Includes Both Hostess® and Dolly Madison® Brands

- Company Requests Court Permission to Conduct Auction to Obtain Highest and
Best Offer

PR Newswire

KANSAS CITY, Mo., Jan. 30, 2013

KANSAS CITY, Mo., Jan. 30, 2013 /PRNewswire/ -- Hostess Brands Inc. ("Hostess
Brands" or the "Company") today announced that the Company has selected
affiliates of Apollo Global Management, LLC (NYSE: APO) (collectively with its
subsidiaries "Apollo") and Metropoulos & Co. ("Metropoulos") as the stalking
horse bidder for the majority of the assets of the Company's snack cake
business, which includes both Hostess® and Dolly Madison® branded products,
including the iconic Twinkies® brand.

Apollo and Metropoulos have agreed to pay $410 million to purchase the brands,
5 bakeries and certain equipment.

"We are pleased to name Apollo and Metropoulos as the stalking horse bidder
for these valuable and beloved brands," said Hostess Brands Chairman and Chief
Executive Officer Gregory F. Rayburn. "Interest in these iconic brands has
been intense and competitive and we expect that to continue through a robust,
court-authorized auction process. The ultimate goal will be the same we have
had since we began marketing all of our assets – to maximize value for all of
the Company's stakeholders and ensure these great products can be enjoyed by
their loyal fans for many years to come."

Hostess Brands has requested that the U.S. Bankruptcy Court for the Southern
District of New York (the "Court") authorize the Company to proceed with an
auction for the majority of the assets of the snack cake business on March 13,
provided the Company receives competing qualified bids. The Company will
select the highest and best offer at the conclusion of the auction. The sale
to the winning bidder requires Court approval.

As previously announced, Hostess Brands has reached stalking horse agreements,
contemplating an aggregate purchase price of more than $440 million, to sell
the majority of the assets related to its bread business, including its
Wonder®, Butternut®, Home Pride®, Merita®, Nature's Pride®, Beefsteak®,
Sweetheart®, Eddy's®, Standish Farms® and Grandma Emilie's® bread brands as
well as its Drake's® snack cake business.

The Company will select the winning bidders for the assets of the bread and
snack cake businesses at the conclusion of various auctions. Sales to the
winning bidders require Court approval.

"The stalking horse bids have set a floor of more than $850 million for the
bulk of the Company's assets," Mr. Rayburn said. "We look forward to
competitive auctions to further drive value for all of the Company's
stakeholders."

Jones Day provided legal advice to Hostess Brands on the transaction. Perella
Weinberg Partners served as the Company's financial advisor.

About Hostess Brands

Founded in 1930, the Company's products include iconic brands such as
Hostess®, Wonder®, Nature's Pride®, Dolly Madison®, Drake's®, Butternut®, Home
Pride®, and Merita®. 

 

SOURCE Hostess Brands Inc.

Contact: Tom Becker, Sitrick And Company, +1-212-573-6100,
Tom_Becker@sitrick.com, or Anita-Marie Laurie, Sitrick And Company,
+1-310-788-2850, AnitaMarie@sitrick.com