Hostess Brands, the bankrupt producer of bakery products in US, has selected affiliates of Apollo Global Management and Metropoulos as stalking horse bidders for majority of its snack cake business, including Twinkies brand.
Apollo Global Management and Metropoulos have agreed to pay $410m to purchase the brands, five bakeries and certain equipment.
Hostess Brands has approached the US Bankruptcy Court for the Southern District of New York to authorize the company to proceed with an auction on 13 March for the majority of snack cake business.
Hostess Brands chairman and chief executive officer Gregory Rayburn said that interest in the company's iconic brands has been competitive and they 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," Rayburn added.
Hostess Brands will choose the winning bidders for the assets of the bread and snack cake businesses at the conclusion of various auctions.
