The dismantling of Hostess Brands Inc. continued last week as bidders, including the owner of Pabst Brewing Co., emerged to buy the bankrupt company's bread and cake brands.
C. Dean Metropoulos & Co., the private equity firm that owns the popular Pabst beer label, is one of the likely stalking horse bidders for Hostess cake brands such as Twinkies, Ho Hos, Ding Dongs and CupCakes, according to a person close to the deal.
Metropoulos would be joined by Apollo Global Management, a private equity firm that owns major companies such as Carl's Jr. parent CKE, the source said.The stalking horse bidder sets the auction standard for other prospective buyers.
Two other firms have offered to buy some of Hostess' brands and the company's Drake's snack segment.
United States Bakery Inc., based in Portland, offered $28.9 million to buy Sweetheart, Eddy's and other brands from Hostess.
McKee Foods Corp. of Tennessee, which makes Little Debbie, wants to take over Drake's brands, such as Ring Dings and Yodels, for $27.5 million.
— Los Angeles Times