NEW YORK -- The new owners 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 includes 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 offer from Apollo and Metropoulos still needs to be reviewed to determine whether it qualifies, according to the source.If not, Friday's auction would be canceled and McKee would be picked as the buyer. Representatives for Apollo and Metropoulos would not comment.Apollo's investments include fast-food chains Carl's Jr. and Hardee's. Metropoulos owns Pabst beer.Hostess had already picked the two investment firms as the buyer for Twinkies, Ding Dongs, Ho Hos and other Hostess cakes after nobody stepped forward to top a $410 million offer, according to a filing in Bankruptcy Court on Monday.In reference to that deal, Metropoulos CEO and founder Dean Metropoulos said in a statement that the firm is looking forward to having "America's favorite snacks back on the shelf by this summer."Hostess previously picked Flowers Foods as the buyer for Wonder and other major bread brands; no competing offers were made in that case, either.Have more to add? News tip? Tell us
