Twinkies-Maker Hostess Comes Back From the Dead, Will Go Public This Week
Do you remember several years ago when Hostess declared bankruptcy and the collective junk food-eating world scrambled to stock up on their beloved Twinkies? Following four years of bankruptcy, Hostess is set to go public after an acquisition by Apollo Global Management and Metropoulos & Co. The company will sell the brand for $375 million in cash to Gores Holdings, run by Gores group, a private equity firm.
Gores Group has worked out a deal with the soon-to-be publicly traded company for an estimated IPO worth $2.3 billion, according to USA Today.
"Hostess presents a unique opportunity to invest in an iconic brand with strong fundamentals that is poised for continued growth," Gores said in a statement. "We look forward to working with the team at Hostess as we collaborate to further capitalize on these attractive growth prospects.”
So what does this mean for the average consumer? The company that brought us Twinkies, Ding Dongs and CupCakes is back in a big way. A few of its assets like the iconic Wonder Bread, were liquidated back in 2012 when the company first announced its bankruptcy.
Hostess appears to have bounced back and announced a profit margin of $650 million over the past year.