Court approves bankrupt Hostess Brands' auction of Twinkies, other brands
12 Feb 2013
Hostess Brands Inc, owner of the Hostess, Wonder Bread, Nature's Pride, Dolly Madison, Butternut Breads, and Drake's brands, was granted permission by a court to wind up its 82-year-old business in November following a strike by a bakery union that crippled its operations.
US Bankruptcy judge Robert Drain in White Plains, New York, today approved Flowers Foods Inc, along with McKee Foods Corp, United States Bakery Inc, Apollo Global Management LLC and C Dean Metropoulos & Co as lead bidders or stalking horse bidders. They have set the thresholds that other bidders would need to exceed.
The company is in the process of assets liquidation and has put everything on the block from bakery brands to equipment to real estate.
Chief executive officer Greg Rayburn said on 31 January that initial bids for assets totaled around $858 million with about $100 million more for sale.
Private equity firms Apollo Global Management LLC and Metropoulos & Co offered around $410 million for the Hostess snack-cake business, which included Dolly Madison brands, five bakeries and equipment.
Thomasville, Georgia-based Flowers, made the lead bid for Hostess's Wonder, Butternut, Home Pride, Merita and Nature's Pride brands, along with 20 bread plants, 38 depots and other assets. The company bid $360 million, plus $30 million for the Beefsteak brand. An auction would be held on 28 February.
