Hostess Bankruptcy: Twinkies and Ho-hos Have Found Good Homes
If you have a sweet tooth like I do, you’ll be comforted to know Twinkies, Ho-Hos and other cream-filled (but nutritionally devoid) delights appear to be headed for new homes. In court-supervised auctions late in March, the big brands and product lines owned by Hostess Brands were sold off to the highest bidders. And all appear capable of maintaining these goodies as we know and love them.
Two investment funds with food experience, Metropoulos & Co. and Apollo Global Management, will pay $410 million to purchase the Twinkies, Ho-Hos, Ding Dongs and Donettes snack cakes brands plus five bakeries and some equipment. C. Dean Metropoulos is a familiar name, especially in these circumstances, having bought a number of troubled brands and food companies since 1996.
Flowers Foods, a well established, $2.7 billion baker out of Thomasville, Ga., agreed to pay $360 million for the majority of the bread business, including 20 bakeries, 38 depots and other assets. That of course includes the Wonder, Nature's Pride, Merita, Home Pride and Butternut brands.
Grupo Bimbo, now America’s biggest baker, emerged as the winning bidder for assets related to Hostess’ Beefsteak brand, beating out Flowers with a bid of $31.9 million.
The Drake's snack cake business was awarded to McKee Foods, owners of the Little Debbie brand, which bid $27.5 million. So a great fit there.
United States Bakery, better known as Franz Family Bakeries, got the Sweetheart, Standish Farms, Grandma Emilie's and Eddy's bread businesses for $30.9 million.
Bottom line: Twinkies should be back on your grocery store shelf by mid-summer.