Hostess Brands is set to be acquired by another private equity firm, a precursor to a public listing later this year.
The owner of the iconic Twinkies brand is currently owned by Apollo Global Management and investor Dean Metropoulos, who bought it in 2013 when it was on the verge of bankruptcy. They have now agreed a deal to sell Hostess to the Gores Group for $725m and a 42% stake in the private equity firm. Apollo and Metropoulos had acquired Hostess for $410m, following which they undertook a major restructuring of the company.
The Gores Group noted: “Hostess presents a unique opportunity to invest in an iconic brand with strong fundamentals that is poised for continued growth”. The group said it plans to list Hostess on the stock exchange in 2016. Metropoulos will stay on as Executive Chairman, while William Toler will remain as CEO.