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Hostess Brands Returns To Wall Street In $725 Million Acquisition

Posted On: 11/8/2016

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TAGS: Hostess Brands, Twinkies, Ding Dong, Hostess IPO, Gores Group, TWNK, Gores Holdings, Apollo Global Management, Metropoulos, Twinkies shelf life

LOS ANGELES -- Hostess Brands LLC, maker of Twinkies, Ding Dongs and other snack cake classics, is once again a public company. An affiliate of private equity firm Gores Group completed the purchase of a majority stake in Hostess Brands for about $725 million on Nov. 4, with the intent to bring the company public.

The company started trading on Nov. 7 on the Nasdaq with the ticker symbol TWNK. When Gores Holdings, which is already a public company, bought Hostess, it changed its own name to Hostess Brands.

The current majority owners of Hostess, Apollo Global Management and Metropoulos, anticipated holding a combined stake of about 42% in Hostess Brands upon completion of the listing. They bought Hostess in 2013 after the bakery filed for bankruptcy the year before.

Metropoulos said a big change to the Twinkie brand under its new ownership was an extension of its shelf life from 28 days to 65 days, which has been key factor driving the company's turnaround.

Hostess had revenues for the 12 months ended June 30, 2016, of about $658 million. It operates five baking facilities located in Emporia, KS, Indianapolis, IN, Columbus, GA, and Southbridge, MA.