Hostess, four years after bankruptcy, will go public again

Hostess will return to its status as a publicly traded company almost four years after the iconic maker of Twinkies declared bankruptcy.

The change is expected in the third quarter this year, about four years after Hostess assets were bought out of bankruptcy proceedings.

As part of the deal, Gores Holdings, an affiliate of Gores Group that was set up to make acquisitions and other deals, will pay $375 million in cash to Hostess shareholders.

While the yellow sponge cakes have strong brand recognition, taking Hostess public will test investors’ appetite for a company that trades in the kind processed sugar that Americans are increasingly trying to avoid. The company operates three baking facilities located in Emporia, Kansas; Indianapolis, Indiana; and Columbus, Georgia. The Company has a competitively advantaged business model and Direct-to-Warehouse distribution system, and an experienced management team with a successful track record in both relaunching and growing businesses. Toler also credited $130 million in information technology and bakery investments by Apollo and Metropoulos that have improved plant efficiencies. Because of Hostess’ bankruptcy, 15,000 unionized jobs were lost. In 1930, Twinkies were introduced. The company claims its Wonder bread, a vitamin-enriched sliced bread, was the first 100 percent natural bread available across the United States. Metropoulos & Company has made a name for itself by purchasing and reviving heritage brands, like Pabst Blue Ribbon. The joint venture between Apollo and Metropoulos will continue to own 42% of the company after the transaction. That trend took a toll on Hostess in recent years, contributing to the company’s two bankruptcies in the past decade.

Gores said: “We have evaluated a number of potential acquisitions for Gores Holdings and believe this transaction offers a superior option for our stockholders”. Another group of investors affiliated with parent Gores Group and Hostess have committed an.

Hostess said Tuesday that it had $650 million in revenue in the 12 months ending May 31.