The new buyers of Twinkies apparently developed a sweet tooth for Hostess snack cakes.
Apollo Global Management and Metropoulos & Co., which made a joint offer to snap up the famous cream-filled cakes, have also entered the contest to buy Drake’s, which include Devil Dogs and Yodels, according to a source who requested anonymity because the sale process is private.
The fresh offer poses a challenge to McKee Foods, the maker ofLittle Debbie cakes. Hostess had previously picked McKee’s $27.5 million offer as the “stalking horse” bid for Drake’s that set the floor for an auction. The deadline to submit competing offers was 5 p.m. EDT Tuesday.
The offer for Drake’s from Apollo and Metropoulos still needs to be reviewed to determine whether it qualifies, according to the source. If not, the auction on Friday would be canceled and McKee would be picked as the buyer.
Representatives for Hostess and McKee Foods declined to comment.
Representatives for Apollo and Metropoulos were not immediately able to comment. Apollo’s investments include fast-food chains Carl’s Jr. and Hardee’s. Metropoulos owns Pabst beer.
The two investment firms were already selected by Hostess as the buyer for Twinkies, Ding Dongs, Ho Hos and other Hostess cakes after nobody stepped forward to top its $410 million offer, according to a filing in bankruptcy court Monday.
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article courtesy of Joy105.com
