It was only four years ago that sweet treat connoisseurs were bemoaning the loss of the Twinkie. Now Twinkie’s maker, Hostess Brands LLC, is going public.
The organization will sell a majority stake to Gores Holdings for $725 million, making its initial stock offering valued at around $2.3 billion.
That’s a stark contrast from 2012 when the company entered Chapter 11 bankruptcy and booted 18,500 of its employees. RELATED: Speak with one consistent voice to your internal audience with this free guide.
In a statement, Hostess executive chairman, C. Dean Metropoulos said:
This new phase in Hostess’s evolution and partnership with the Gores Group and our broader investor partners will continue to propel Hostess into a growing and innovative company with significant reach and potential long into the future.
Investment firms Metropoulos & Co. and Apollo Global Management purchased Hostess’s snack brands through liquidation in 2013 for $185 million in cash. They borrowed another $500 million to purchase its assets (factories, recipes and equipment).