Private equity firms C. Dean Metropoulos & Co., owner of Pabst Blue Ribbon, and Apollo Global Management are nearing a $400 million deal for Irving-based Hostess Brand’s Twinkies and other cakes,Â the Wall Street JournalÂ reports. The deal could be announced later today, and would serve as an indicator of prices in Hostess’ bankruptcy court asset auction. From the WSJ:
Apollo, the giant buyout shop co-founded by Leon Black, and Metropoulos, owner of the Pabst Blue Ribbon beer brand, have been looking to partner on a deal for some time. They emerged as the front-runners to snap up Hostess’s cake brands and negotiations between them and the company picked up steam in recent days, leading to the expected deal, people familiar with discussions said.
At least one publication is applauding the possible Twinkie/Pabst mash-up. From Esquire’s “Eat Like a Man” blog:
…basically, this could be the deal of the century: A cheap, easy-drinking, red-white-and-blue beer brand and a buying firm of the type which only exist in capitalist countries are about to buy the only thing more American than a cheeseburger and fries. They’re made for each other. Now we just have to start handing our 8-year-olds PBRs when we buy them Twinkies. Because we get it – those Twinkies you buy areÂ totallyÂ just for the kids.
Gotta say I tend to agree.