KANSAS CITY — Hostess Brands L.L.C., which was acquired last year by Apollo Global Management L.L.C. and C Dean Metropoulos & Co. for $410 million, may go up for sale again early next year, according to various media reports.
Executives from the involved parties have declined to comment on the discussions, but both Bloomberg and Reuters have reported the business could be valued at more than $1.6 billion. The potential sale was first reported by the New York Post on Nov. 11.
Bloomberg indicated that owners have notified some potential advisers of their plans, and several suitors have been made aware of a potential sale. According to Bloomberg, Grupo Bimbo S.A.B. de C.V. and Flowers Foods, Inc. both could have interest in the business, but representatives of the companies did not respond to requests for comments. Flowers acquired the majority of the Hostess bread business in 2013 for $360 million, while Grupo Bimbo bought the Beefsteak bread brand for $31.9 million. Both companies also expressed interest in the company’s snack cakes business at that time.
Since acquiring Hostess last year, Apollo Global Management and C Dean Metropoulos have worked hard to reestablish the snack cakes in the market, including launching new products in new outlets.
In October, Hostess said it would sharpen its focus on its convenience store offerings, rolling out eight new single-serve breakfast items. The company will offer four new 5-oz Danish Pastries available in apple, berries and cheese, cheese and chocolate; three new 5.5-oz Jumbo Muffins available in banana nut, blueberry and chocolate chip; and one new 3.7-oz donut item available in Glazed Donettes. The items will be sold in individual single-serve packs for a suggested retail price of $1.79 nationwide at convenience stores, grocery, drug, dollar and mass retail outlets starting in January 2015.In addition, the company has launched its new Hostess Partner Program, a strategic trade initiative designed to ensure continued and accelerated category growth following the comeback of the iconic Hostess product line.