Hostess to be purchased by Sun Capital Partners? Twinkiegate could be coming to an end
A Hostess savior could have finally emerged. It's being reported that private equity firm Sun Capital Partners is looking to buy Hostess Brands Inc., which announced it was going under on Nov. 16.
This news comes courtesy of Fortune, who learned that Sun Capital plans to continue running Hostess as it was before its impending closure. Apparently Sun Capital privately approached Hostess about acquiring the company earlier this year, but "the bakery's creditors chose for an alternate reorganization plan that ultimately failed." Now that Hostess has announced its liquidation, Sun Capital has reached out to Hostess advisor Perella Weinberg Partners and also plans to contact Hostess's labor unions about purchasing the company.
"I think that we could offer a slightly better, more labor-friendly deal than what was on the table last week," Sun Capital co-CEO Marc Leder tells Fortune. "We also think that one point the unions have made is that there hasn't been a great amount of reinvestment in the business. We've found that investing new capital into companies like this can be very positive for brand, people and profitability ... We would look to invest in newer, more modern, manufacturing assets that would enable the company to become more productive and to innovate."
So if you've been hoarding Hostess products for fear that you might never see a Ding Dong again, it sounds like you're in luck. If you're one of the people who's trying to sell Twinkies on eBay or Craigslist for $1,000 though, it's time to start labeling them "vintage."