NEW YORK – Bankrupt Hostess has picked a lead bidder for its iconic Twinkies brand.
A bankruptcy court revealed that an offer from investment firms C. Dean Metropoulos & Co. and Apollo Global Management LLC has won the lead bid for Twinkies and other snack cake brands.
Previously, sources had indicated that the firms’ joint offer would emerge as the lead bid. According to Hostess, the offer is for $410 million for the snack cake business and five bakeries.
This is a “stalking horse” bid that would allow competitors to make better offers. A sale requires formal approval from a judge.
In November, Hostess announced that it would go out of business and sell off its brands.
It has already picked Flowers Foods—maker of Tastykakes—as the lead bidder for Wonder Bread. McKee Foods Corp.—the company that produces the Little Debbie brand—is the lead bidder for the Drake’s Cakes line.