Monday, September 1, 2014
Inquirer Daily News

UPDATE: Sixers owner could buy Twinkies, Wonder Bread

'Labor-friendly' bid from Sun's Leder?

UPDATE: Sixers owner could buy Twinkies, Wonder Bread

Hostess announced that it will liquidate and close its operations worldwide, including the bakery and distribution operation in Northeast Philadelphia. ( TOM GRALISH / Staff Photographer )
Hostess announced that it will liquidate and close its operations worldwide, including the bakery and distribution operation in Northeast Philadelphia. ( TOM GRALISH / Staff Photographer )

Sun Capital, the Florida firm co-headed by Philadelphia 76ers boss and Romney donor Mark Leder, is among the buyers interested in Hostess Brands, shut last week amid a long-running bankruptcy and labor struggle, says Fortune's Dan Primack here. 

Sun already owns Manayunk-based PaperWorks and previously bought and downsized South Jersey's Aluminum Shapes and Jevic Transportation, among many other U.S. firms.

"I think that we could offer a slightly better, more labor-friendly deal than what was on the table last week," Leder told Primack.

"We also think that one point the unions have made is that there hasn't been a great amount of reinvestment in the business. We've found that investing new capital into companies like this can be very positive for brand, people and profitability... We would look to invest in newer, more modern, manufacturing assets that would enable the company to become more productive and to innovate."

EARLIER: Hurst Capital LLLP, a small Florida buyout firm, says it's offering to buy bankrupt Hostess Brands Inc., maker of Wonder Bread, Twinkies, Drake's Cakes, Ring Dings and other junk food and sliced breads, along with the company's shuttered bakeries in Philadelphia and other cities, for an as-yet unnamed price. Won't say how much it's offering creditors. Statement here.

More coverage

UPDATE: "I can confirm that we have had interest from buyers for specific assets," says Hostess spokesman Erik Halvorson. Won't say who. 

MORE from Fortune:  "Sun's earlier proposal would have maintained the existing lenders -- led by Silver Point Capital and Monarch Alternative Capital -- and would expect to do the same this time around. But Sun also believes that it could "make the company immediately profitable on an EBITDA basis," which could open the door for the current lenders to exit and new ones to step in.

"Leder also thinks that Hostess would be a relatively easy company to restart, particularly given that most of its vendors still have empty shelves where Hostess products used to reside. Moreover, he doesn't buy the argument that Hostess is a long-term loser due to the changing American diet."

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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