Hostess sells Twinkie to billionaire investors
Investment group now competing with McKee for Drake
A group of investors bought Twinkie brand snacks from Hostess for $410 million, according to Forbes.com.
The Associated Press reported that Apollo Global Management and Metropoulos & Co., which made a joint offer to buy Twinkie, is now also in the contest to get Drake snack cakes.
In January, leaders with bankrupt Hostess Brands announced that Collegedale's McKee Foods Corporation had been selected as the stalking horse bidder for Drake’s snack cake brand, as well as certain equipment.
Collegedale's McKee Foods agreed to pay $27.5 million for Hostess Brands' Drake snack cakes, such as Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake’s Coffee Cake, as well as some equipment.
A stalking horse bidder is selected by a bankrupt company. It allows the bankrupt company to avoid low bids on assets.
The deadline for competing offers was Tuesday, according to The Associated Press.
Leaders need to review Apollo and Metropoulos' offer to see if it qualifies, and if it doesn't, McKee will be picked as the buyer, The Associated Press reported.
