Twinkies maker Hostess Brands explores sale amid takeover interest -sources

Hostess Brands

25/08/2023 19:37

By Anirban Sen and Abigail Summerville
       NEW YORK, Aug 25 (Reuters) - Hostess Brands Inc
 TWNK.O , the maker of Twinkies snack cakes, is exploring a sale
after fielding takeover interest from major snack food makers,
people familiar with the matter said on Friday.
    Hostess became an acquisition target after it raised prices
on some of its products to boost revenue, fueling investor
concerns over its prospects. Prior to the news of the company
exploring a sale, its shares were down 1% year-to-date, versus a
29% rise in the Nasdaq Composite Index.
    General Mills Inc  GIS.N , Mondelez International Inc
 MDLZ.O , PepsiCo Inc  PEP.O  and Hershey Co  HSY.N  are among
the companies that have shown an interest in acquiring Hostess,
the sources said.
    Hostess has hired investment bank Morgan Stanley  MS.N  for
advice on handling the deal negotiations, the sources said. No
agreement is certain and Hostess may decide against any deal,
the sources added.
    The sources asked not to be identified because the matter is
confidential. Hostess declined to comment, while General Mills,
Mondelez, PepsiCo, Hershey and Morgan Stanley  MS.N  did not
immediately respond to requests for comment.

 (Reporting by Anirban Sen and Abigail Summerville in New York;
Editing by Chris Reese)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
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