Twinkies buyers hungry for more Hostess cakes
The new buyers of Twinkies apparently developed a sweet tooth for Hostess snack cakes.
Apollo Global Management and Metropoulos & Co., which made a joint offer to snap up the famous cream-filled cakes, have also entered the contest to buy Drake's, which include Devil Dogs and Yodels, according to a source who requested anonymity because the sale process is private.
The fresh offer poses a challenge to McKee Foods, the maker of Little Debbie cakes. Hostess had previously picked McKee's $27.5 million offer as the "stalking horse" bid for Drake's that set the floor for an auction. The deadline to submit competing offers was 5 p.m. EDT Tuesday.
The offer for Drake's from Apollo and Metropoulos still needs to be reviewed to determine whether it qualifies, according to the source. If not, the auction on Friday would be canceled and McKee would be picked as the buyer.
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