Hostess names Apollo, Metropolous stalking horse bidder for Twinkies

New York, Jan. 30 - Hostess Brands Inc. selected Apollo Global Management, LLC and Metropoulos & Co. as the stalking horse bidder for its snack cake business, which includes Hostess and Dolly Madison products, among them Twinkies.

Apollo and Metropoulos have agreed to pay $410 million for the brands, five bakeries and equipment.

An auction will be held on March 13, if other bids are received, subject to court approval.

"Interest in these iconic brands has been intense and competitive and we expect that to continue through a robust, court-authorized auction process," commented Gregory Rayburn, chairman and chief executive officer of Hostess.

Completion of the sale is expected in April, assuming court approval and that Apollo and Metropolous win any auction.

"We are pleased to be partnered with Apollo as we seek to resurrect Hostess Snacks and return these legendary products to the American consumer," said C. Dean Metropoulos, founder and chief executive officer of Metropoulos & Co., a merchant banking and management firm focused on the food and consumer sectors.

"For more than 25 years we have had the opportunity to acquire and grow some of the world's most widely recognized consumer food and beverage brands, and I look forward to working with Apollo in rebuilding these heritage brands and ensuring their long term availability to their loyal consumers. Never before have we seen such a groundswell of support and desire for a brand's return and revival."

The company noted that it has previously reached stalking horse agreements totaling $440 million for the majority of the assets related to its bread business, including its Wonder, Butternut, Home Pride, Merita, Nature's Pride, Beefsteak, Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brands as well as its Drake's snack cake business.

Stalking horse bids so far agreed, which cover "the bulk" of the company's assets, total $850 million.

Hostess Brands, an Irving, Texas-based operator of regional bakeries, filed for bankruptcy on Jan. 11, 2012. Its Chapter 11 case number is 12-22052.

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