(AP) - Hostess has picked a lead bidder for its famous Twinkies. The bankrupt company says it has selected a joint offer from two investment firms - C. Dean Metropoulos & Co. and Apollo Global Management LLC - as the lead bid for its Twinkies and other snack cakes.
Hostess, says the two are offering to pay $410 million for the snack-cake business and five bakeries. The bid includes buying the plant in Emporia.
The joint "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.
"Interest in these iconic brands has been intense and competitive and we expect that to continue
through a robust, court-authorized auction process. The ultimate goal will be the same we have had
since we began marketing all of our assets – to maximize value for all of the Company's stakeholders and ensure these great products can be enjoyed by their loyal fans for many years to come," said Hostess Brands Chairman and Chief Executive Officer Gregory F. Rayburn.
After years of management turmoil and turnover, Hostess declared it was going out of business and selling its brands in November. The company already announced separate lead bidders for its other brands including Drake's cakes and Wonder bread.