So it looks like Apollo Global Management and Metropolous & Co. will be bringing back the Twinkie. And they’re willing to pay almost as much for that right as Hostess said it was worth—all of it—when it filed for bankruptcy.

The private equity firms bid $410 million for most of Hostess’ cakes, and certainly all of the important ones: Twinkies, Ding Dongs, CupCakes and Ho Hos, as well as some things called Donettes. (I’ve never heard of the latter. Were they available in the greater New York area during the late 80s and early 90s?)

That means Hostess Brands’ current hedge-fund and private equity owners will get at least $850 million for the pieces of a company they said was worth only $450 million. And it probably still doesn’t account for the money the new owners can skim off the top of the pension plan. Which makes us wonder whether this whole adventure was necessary at all, if Hostess and its owners had any idea how to run a business.

Hostess Chooses Apollo, Metropoulos as Lead Bidder [Bloomberg]
Apollo, Metropoulos Bid $410 Million for Most of Hostess Cake Assets [WSJ]

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Comments (11)

  1. Posted by thats right | January 31, 2013 at 7:18 PM

    Uhh donettes are dank. the best powered sugar donuts on market. None of this Entenmann's bull shit.

  2. Posted by Shazared | January 31, 2013 at 7:37 PM

    Deep Thoughts with Jon Shazar.

  3. Posted by Lowly Assistant | January 31, 2013 at 7:46 PM

    I can confirm. I used to eat these in HS for lunch, and would spend the rest of my lunch allowance on cigarettes. And thus started my adherence to the Irish diet.

  4. Posted by Im_a_Dude | January 31, 2013 at 8:02 PM

    Shazar, what do you know about Twinkies?

  5. Posted by Guest | January 31, 2013 at 8:52 PM

    I ate a Twinkie. Then came the Shazar.

    L'twinkie, v'shazar.

  6. Posted by Guest | February 1, 2013 at 8:44 AM

    no love for yodels?

  7. Posted by hungry guest | February 1, 2013 at 12:44 PM

    What about Chocodiles? Is no one going to save the Chocodiles?

  8. Posted by Fire Jon Shazar | February 1, 2013 at 1:36 PM

    Your brain is made of twinkies

  9. Posted by Aaron | February 1, 2013 at 4:24 PM

    Yeah, Donettes are the little 6-count mini donuts they sold. Could have purchased them in a big bag as well, I believe.

  10. Posted by Dilbert Gottfried | February 3, 2013 at 12:00 AM

    You are seriously the laziest writer in the Internet. How are you still employed?

  11. Posted by sohbet | March 29, 2014 at 4:21 PM

    deha hafdregdcdgd