Some deals are sweeter than others. Sometimes those deals come by way of bankruptcy court.
Next week, US Bankruptcy Court will consider a $410 million bid from Apollo Global Management and Metropoulos & Co. for for bankrupt Hostess and Dolly Madison branded products, according to a statement released Tuesday.
Hostess will request the court approve the transaction at a 19 March hearing. No other qualified bids were received for those assets, according to the statement.
The deal would give Apollo and branded products specialist Metropoulos ownership of five bakeries and equipment, as well as iconic desert food brands like Twinkies, Ho Hos, Ding Dongs and Donettes.
“The agreement results in significant value for our stakeholders and we look forward to putting the proposed transaction before the Court next week,” said Hostess Brands chairman and chief executive officer Gregory Rayburn in a statement.
Apollo declined to comment. Metropoulos could not be reached for comment.at press time.
The 19 March hearing will also include consideration of separate bids for other Hostess Brands’ bread business and its Beefsteak brand, according to the statement.
Prior to filing an emergency motion to wind down its business and sell its assets in November, Hostess Brands had been owned by Ripplewood Holdings, which purchased its stake in the company in 2009. Hostess’ management had been unable to reach an agreement with the Bakery, Confectionary, Tobacco and Grain Millers Union, which had initiated a strike of the company earlier that month.