Hostess Brands Inc., the bankrupt maker of Wonder bread, said no competing bids were received for its snack-cake business including Twinkies, resulting in a proposed auction to be canceled.
A joint offer from Apollo Global Management LLC (APO:US) and C. Dean Metropoulos & Co. was the only qualified bid received by the deadline, lawyers for hostess said in court papers filed today in U.S. Bankruptcy Court in White Plains, New York. “Accordingly, pursuant to the bidding procedures order, no auction will be conducted and buyer is the successful bidder,” the lawyers said.
Apollo and Metropoulos offered as much as $410 million for the Hostess snack-cake business, which also includes CupCakes, Ding Dongs and Ho Hos, and other assets, including five bakeries and equipment.
Hostess, previously known as Interstate Bakeries Corp., exited the earlier bankruptcy under the control of buyout firm Ripplewood Holdings LLC and lenders.
Under the accord, the brands to be acquired by Apollo and Metropoulos will include Hostess, Dolly Madison, Mini Muffins, Zingers and Suzy Q’s. Hostess Feb. 11 won bankruptcy court approval to hold auctions for brands including Twinkies. A sale hearing, to approve the highest and best bids, is set for March 19.
Mark Semer, a spokesman for Metropoulos, didn’t immediately respond to a request seeking comment on the court filing.
Charles Zehren, a spokesman for Apollo, declined to immediately comment.
The case is In re Hostess Brands Inc., 12-bk-22052, U.S. Bankruptcy Court, Southern District of New York (White Plains). The prior bankruptcy was In re Interstate Bakeries Corp., 04-45814, U.S. Bankruptcy Court, Western District of Missouri (Kansas City).
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