Business

Twinkies maker Hostess to go public again

Hostess prodcuts Image copyright Getty Images

Hostess, the maker of Twinkies, will return to the stock market four years after it nearly collapsed.

Hostess's owners will sell the company to private equity firm the Gores Group, which plans to take the snack cake maker public later this year.

The Gores Group will pay £725m (£555m) for the brand and Hostess' current owners will take a 42% stake in Gores.

Apollo Global Management and investor Dean Metropoulos bought Hostess in 2013, saving it from bankruptcy.

"Hostess presents a unique opportunity to invest in an iconic brand with strong fundamentals that is poised for continued growth," said Alec Gores, chief executive of the Gores Group.

In 2012 Hostess filed for bankruptcy after failed talks with its workers' union left the company cash-strapped.

Public outcry in the US followed the announcement that the iconic brand - makers of Twinkies, yellow cakes filled with cream; Ding Dongs, chocolate cupcake filled with cream; and Sno Balls, cream-filled chocolate cakes covered with marshmallow frosting - was closing.

Apollo and Mr Metropoulos bought Hostess for $410m and restructured the company.

"We are extremely proud of all that we have accomplished together since we acquired these assets out of liquidation in 2013," said Andy Jhawar, head of the consumer and retail group at Apollo

Hostess has used the tagline "the sweetest comeback ever" to promote its products and had $650m in sales in the last fiscal year, which ended 31 May.

Mr Metropoulos will stay on as executive chairman of Hostess and William Toler will remain chief executive after the company is sold to Gores and begins publicly trading.

Hostess was founded in 1919 and has twice faced bankruptcy.

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