Twinkies' Maker Hostess to Go Public After Acquisition
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Hostess Brands, the baker of Twinkies and Ding Dongs, plans to become a publicly listed company, marking a revival for an iconic American baker that just three years ago was facing liquidation.
An acquisition vehicle linked to Gores Group will provide $375 million to the deal, and other investors have committed $350 million in a private placement, the companies said in a statement Tuesday. Hostess’s current owners — private equity firm Apollo Global Management and investor Dean Metropoulos — will hold a 42% combined stake in the vehicle, which will be renamed Hostess Brands.
The deal marks a comeback for a brand that was close to extinction before Apollo and Metropoulos bought Hostess out of bankruptcy in 2013. Hostess was founded in 1919 and gained popularity with its cream-filled, swirled-icing cupcakes. In 1930, the company introduced Twinkies, a snack that became a mainstay of American supermarkets and popular culture.
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