ABC News’ Aaron Katersky reports:
Buyout firms Apollo Global Management, LLC and Metropoulos & Co. have agreed to purchase the Hostess and Dolly Madison cake brands, including Twinkies. The iconic snacks have been off the market since Hostess closed its plants in November and declared bankruptcy after its unions went on strike.
The proposed transaction includes the brands, five bakeries, and certain equipment for $410 million. The transaction requires US Bankruptcy Court approval. A hearing to consider approval of the sale will take place on March 19.
“We are very pleased to have the opportunity to bring back ‘America’s favorite snack’. Apollo and I are proud to be associated with such an outstanding set of brands,” Dean Metropoulos, founder and CEO of Metropoulos & Co., said in a statement “This transaction will ensure the beloved Hostess snack cakes can continue to be enjoyed for years to come. We look forward to returning the iconic Hostess products, including Twinkies, Ding Dongs, and HoHos, to consumers as soon as possible. In addition, we are also pleased to be able to provide employment opportunities for many people in cities around America.”
Some 18,500 workers were left jobless by the closing. It was not immediately clear how many, if any, of those jobs would be saved. Apollo reportedly plans to outsource distribution to third-party drivers and produce the snacks in existing bakeries, rather than those that were shuttered.