The new owners, Gores Holdings, an acquisition company run by the private equity firm, The Gores Group, will put up $375 million in cash, the companies said Tuesday. At the time, many classic Hostess products such as Twinkies were so scarce that fans took to hoarding them.
"Hostess presents a unique opportunity to invest in an iconic brand with strong fundamentals that is poised for continued growth", Gores Group Chairman and Chief Executive Officer Alec Gores said in a statement.
Gores Holdings is expected to reintroduce Hostess as a publicly listed company, perhaps late this year, with an anticipated initial enterprise value of approximately $2.3 billion or 10.4 times the company's estimated 2016 earnings of approximately $220 million.
Apollo and Mr. Metropoulos will receive shares in the combined company worth an ownership stake of about 42 percent.
Metropoulos and Apollo Global Management, who bought Hostess in 2013, are betting good money on the future of Twinkies.
The Emporia Gazette attempted to contact Hostess Brands for comment about how the sale and eventual public trading of the company could impact the Emporia facility. Production and delivery costs were streamlined, the cakes arrived at convenience stores and a recipe change extended the Twinkies' shelf life by 19 days.
Metropoulos will remain executive chairman of Hostess, and William Toler will continue as chief executive.
The company has kept its headquarters at 1 E. Armour Blvd.in Kansas City throughout the restructuring, which followed years of labor unrest, two bankruptcy filings and declining American consumption of sugary treats.
Hostess had to reinvent itself through the Chapter 11 bankruptcy by making big changes in the form of a smaller and leaner scale of operations.
Metropolous owner Dean Metropolous says the success of New Hostess, as he calls the company, is largely due to a lot of planning before Apollo and Metropolous made the winning bid for the company.
The Hostess Brand can trace its beginning way back to 1919. Just previous year, Hostess closed the bakery in Chicago where the Twinkie was invented, cutting 400 jobs.
Hostess reported revenue of about $650 million for the year ended May 31.