Apollo Global Management And Metropoulos & Co. Sign Agreement To Acquire Certain Hostess Snack Brands And Bakeries

Affiliates of Apollo Global Management, LLC (NYSE: APO) (collectively with its subsidiaries “Apollo”) and Metropoulos & Co. (“Metropoulos”) today announced that they have entered into a “stalking horse” asset purchase agreement to acquire certain assets of Hostess Brands, Inc.’s baked snack foods business (“Hostess Snacks”) for $410 million in cash.

Per the terms of the agreement, Apollo and Metropoulos will acquire certain Hostess Snacks brands, including, among others, Twinkies, Mini Muffins, Cup Cakes, Ho Hos, Zingers and Suzy Q’s, and five Hostess Snacks bakeries located throughout the United States. The agreement provides for the acquisition of the assets of Hostess Snacks free and clear and does not require Apollo and Metropoulos to assume any of Hostess Snacks’ liabilities or other obligations.

The asset purchase agreement constitutes a “stalking horse bid” in a sale process being conducted under Section 363 of Chapter 11 of the U.S. Bankruptcy Code. As such, the acquisition of Hostess Snacks by Apollo and Metropoulos remains subject to approval by the United States Bankruptcy Court for the Southern District of New York and a subsequent auction process in which other interested buyers may submit competing bids for the assets of Hostess Snacks. Completion of the transaction, which is expected to occur prior to the end of April 2013, remains subject to competing offers, approval by the United States Bankruptcy Court, and customary closing conditions.

C. Dean Metropoulos, Founder and Chief Executive Officer of Metropoulos & Co. said, “We are pleased to be partnered with Apollo as we seek to resurrect Hostess Snacks and return these legendary products to the American consumer. 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.”

1 2 Next › Last »