Twinkies Maker Hostess Brands Abandons Sale For IPO

NEW YORK CITY -- Hostess Brands LLC has stepped off the auction block and will instead pursue an initial public offering, according to a Reuters, which cited people familiar with the matter. The move underscores the bakery's growth prospects, as well as its quick turnaround.

In 2012, the Kansas City, MO, company, formerly Hostess Brands Inc., shut down production and said it was selling its brands and factories in bankruptcy liquidation. In 2013, a bankruptcy judge granted Hostess permission to sell most of its snack cake brands, which include Twinkies and Ding Dongs, to private-equity firm Apollo Global Management and investor C. Dean Metropoulos for $410 million.

Hostess, which began a process to sell itself earlier this year, rejected offers in recent weeks from other companies and private equity firms that valued it at between $2.4 billion and $2.5 billion, including debt, Reuters said. | SEE ARTICLE

Founded in 1930, Hostess is one of the largest wholesale bakers and distributors of breads and snack cakes in the United States. Under Apollo and Metropoulos, it relaunched its fabled brands, improved its profitability and regained market share, focusing on distribution channels where it had historically lacked a significant presence, such as vending. | SEE STORY