Hostess Brands Selects Apollo Global Management and Metropoulos & Co. as
Winning Bidder for Majority of Snack Cake Business, Including Twinkies(R)
- Agreement Includes Both Hostess(R) and Dolly Madison(R) Brands
- Company to Seek Court Approval of Sale on March 19
KANSAS CITY, Mo., March 12, 2013
KANSAS CITY, Mo., March 12, 2013 /PRNewswire/ --Hostess Brands Inc. ("Hostess
Brands" or "the Company") announced that the stalking horse bid submitted by
affiliates of Apollo Global Management, LLC (NYSE: APO) (collectively with its
subsidiaries "Apollo") and Metropoulos & Co. ("Metropoulos") for the majority
of the Company's snack cake business, which includes both Hostess® and Dolly
Madison® branded products, will be the bid presented for approval to the U.S.
Bankruptcy Court as no other qualified bids were received for those assets.
Apollo and Metropoulos have agreed to pay $410 million to purchase the brands,
five bakeries and certain equipment. Among the products included are the
Company's Twinkies®, Ho Hos®, Ding Dongs® and Donettes® snack cakes. The
Company will ask the U.S. Bankruptcy Court for the Southern District of New
York to approve the transaction at a hearing on March 19.
"The agreement results in significant value for our stakeholders and we look
forward to putting the proposed transaction before the Court next week," said
Hostess Brands Chairman and Chief Executive Officer Gregory F. Rayburn.
As previously announced, Flowers Foods, Inc. has agreed to pay $360 million
for the majority of the bread business assets. The agreement includes, in
addition to the brands, 20 bakeries, 38 depots and other assets. In a separate
transaction, Grupo Bimbo, S.A.B. de C.V. ("Grupo Bimbo") was selected as the
winning bidder for the assets related to the Company's Beefsteak® bread
business at the conclusion of a Feb. 28 auction. Grupo Bimbo has agreed to pay
$31.9 million for the Beefsteak® assets. The Court will also consider
approval of these brands at the same March 19 hearing for the Hostess® and
Dolly Madison® brands.
On March 15 Hostess Brands will conduct an auction for its Drake's® snack cake
business and Sweetheart®, Standish Farms®, Grandma Emilie's® and Eddy's®
bread businesses. The combined stalking horse bids for those assets total
approximately $56.6 million.
Jones Day provided legal advice to Hostess Brands on all of the transactions.
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; Anita-Marie Laurie, Sitrick And Company,
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