by Christopher Freeburn | March 12, 2013 10:51 am
Twinkies will live on. Bankrupt Hostess Brands has sold its snack-cake unit to two private equity firms.
The snack-cake business along with Hostess’ other business units were scheduled to be auctioned off as part of the company’s liquidation. However, since Hostess received only one bid on the snack cake brands — which include Twinkies, Suzy Q’s and Cup Cakes — the auction was canceled and C. Dean Metropoulis & Company and Apollo Global Management (NYSE:APO) purchased the business for $410 million, Reuters noted.
In a statement, Apollo indicated that it anticipated closing the purchase by the end of April.
Both firms had agreed to serve as the minimum bidders for the snack cake business. While analysts had expected rival bids from other food companies, including Group Bimbo (PINK:GRBMF), none were made.
Hostess collapsed late last year after a strike by its bakers union crippled production and ended the struggling company’s effort to emerge from bankruptcy.
Last month, Flowers Foods (NYSE:FLO) acquired its Wonder Bread brand in a bankruptcy auction.
Shares of Apollo Global Management climbed about 2% in Tuesday morning trading.
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