Friday, March 22, 2013

Twinkies come back to life

hostess twinkie
Thanks to a $410 million sale to turnaround firms Apollo Global Management and Metropoulos & Co., Twinkies are being resurrected. But does anyone care? Just like a two-year-old toddler who suddenly finds an abandoned toy fascinating thanks to another kid's interest, Americans became obsessed with Twinkies when they thought that they were going away.

Before the announcement of the deal, sellers on eBay were trying to get as much as $250,000 for two boxes of Twinkies.

Not to worry, folks. Twinkies will be back on the shelves before the fall -- along with normal prices.

When Hostess Brands Inc. was given the approval in November 2012 to start winding down its operations, bankers thought that a sale of the company's brands could fetch up to $2.4 billion.

Then reality set in. The five major deals announced by Hostess totaled $860 million. Of those, the deal for the cake business assets -- including Twinkies, Ho Hos, Sno Balls and Dolly Madison Zingers -- was the largest.

Maybe people are realizing that Twinkies aren't as great tasting as we thought they were.
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