Twinkies maker will give food brands a sugar high

Hostess Brands

01/09/2023 16:16

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Anita Ramaswamy
       NEW YORK, Sept 1 (Reuters Breakingviews) - Sweet-treat
purveyor Hostess is mulling a sale to a conglomerate seven years
after private equity firm Apollo took it public for $2.3 bln. At
its current valuation, and as the pandemic sugar rush fades,
there’s not much cream left for the next buyer to squeeze.      
 
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    CONTEXT NEWS
Hostess Brands, the maker of Twinkies cakes and other packaged
treats, has tapped investment bank Morgan Stanley as an adviser
as it considers a sale to a major snack-food brand, Reuters
reported on Aug. 25.
    Interested acquirers include Mondelez International,
Hershey, PepsiCo and General Mills, according to Reuters.
    The company’s shares surged 25% on the news to $28.48 as of
4 p.m. (2000 GMT) on Aug. 31 – their highest price in 2023.

 (Editing by Lauren Silva Laughlin, Sharon Lam and Aidtya
Sriwatsav)
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