KANSAS CITY, Mo. -- The private-equity owners of Hostess Brands LLC are planning to put the maker of Twinkies and other snack cakes up for sale in early 2015, potentially valuing it at more than $1.7 billion, including debt, people familiar with the matter told Reuters.
Apollo Global Management LLC and C. Dean Metropoulos & Co., which bought Hostess Brands out of bankruptcy for $410 million in March 2013, have received inquiries from some potential buyers about selling the cake business, the people said.
Hostess Brands is also having conversations with investment banks Rothschild, Credit Suisse Group AG and Perella Weinberg Partners about advisory roles they are likely to have in a potential sale, the people said.
The sources asked not to be identified because the discussions are private. Apollo, Credit Suisse and Rothschild declined to comment, while Metropoulos, Hostess Brands and Perella Weinberg did not immediately respond to requests by the news agency for comment.
Deliberations over a potential sale, first reported by The New York Post on November 11, follow a remarkable turnaround in the past year and a half spearheaded by Apollo and Metropoulos, a consumer industry veteran.
Kansas City, Mo.-based Hostess owns the Twinkies, CupCakes, Ding Dongs, Ho Hos, Zingers, Suzy Q's, Sno Balls, Donettes, Fruit Pie and other snack-cake brands.
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