Dean Metropoulos has teamed up with longtime partner Apollo Global Management to buy some snack cake brands from bankrupt Hostess Brands Inc, writes Reuters. Hostess said on Monday that their $410 million bid was unrivaled, paving the way for the sale of Twinkies, Ding Dongs and Cupcakes once a U.S. bankruptcy court approves.
Reuters – Dean Metropoulos may not be a household name, but the food industry veteran’s reach extends from the pantry to the refrigerator to the freezer.
Metropoulos, who works with his sons Daren and Evan, has teamed up with longtime partner Apollo Global Management (APO.N) to buy some snack cake brands from bankrupt Hostess Brands Inc HTBRS.UL. Hostess said on Monday that their $410 million bid was unrivaled, paving the way for the sale of Twinkies, Ding Dongs and Cupcakes once a U.S. bankruptcy court approves.
It is too early to say what his new strategy will look like but Metropoulos, who came to the United States from Greece as a child, has quite a track record.
“I think of him as having the Midas touch,” said someone who has worked with Metropoulos over the years, but not on this deal.
“He’s got far more wins than he does losses. He comes into situations and is quickly able to evaluate what the issues are and puts all his efforts toward fixing them … I think he’s going to do pretty well here with Hostess,” said the person, who declined to be identified.
Metropoulos is likely to maintain some union representation among Hostess workers, but is unlikely to get “tied up in the same situation that took the company down during the last go-round,” the source said.
Hostess won permission in November to wind down its business and liquidate its assets after a strike by a baker’s union crippled the company’s operations.
“This is the salvation Hostess has been waiting for,” said Anthony Sabino, a business law professor at St. John’s University. The amount being paid, he said, “is a significant outpouring for a brand that was basically left for dead.”