Gores Holdings has completed the acquisition of US-based fresh baked sweet goods maker Hostess Brands.
The combined company will be renamed as Hostess Brands and will trade on NASDAQ under the symbols TWNK and TWNKW, respectively.
Gores Holdings is a special purpose acquisition company sponsored by an affiliate of The Gores Group.
In July, Hostess Brands, the maker of Twinkies and Ding Dongs, agreed to sell a majority stake in the company to a firm sponsored by an affiliate of The Gores Group for nearly $725m.
The transaction was expected to introduce Hostess as a publicly listed company, with an estimated initial enterprise value of approximately $2.3bn.
As previously announced, Apollo Global Management and C. Dean Metropoulos and family, the prior majority owners of Hostess, will continue to hold an approximately 42% combined stake in the company.
Along with the $375m of Gores Holdings’ shareholder equity, C. Dean Metropoulos (through $50m of additional rollover contribution) and Gores affiliates participated in a $350m private placement, led by Alec Gores, chairman and CEO of The Gores Group.
Dean Metropoulos and William Toler continue to lead Hostess as executive chairman and chief executive officer, respectively.
In 2013, C. Dean Metropoulos and certain funds affiliated with Apollo purchased some of the assets owned by Hostess.
Apollo senior partner and consumer & retail group head Andrew Jhawar said: “Becoming a public company is the next evolution in the revitalization of Hostess. Our team at Apollo looks forward to working with the Gores team, the Company’s new Board members and Dean, Bill and the rest of the management team in assisting to drive profitable growth and future shareholder value at Hostess.”
Hostess, which operates five baking facilities in the US, earned a revenue of nearly $658m for the twelve months ended 30 June 2016.
Its treats include CupCakes, Ho Hos, Donettes and Fruit Pies, in addition to Twinkies and Ding Dongs.
