The IPOX® Watch: Hostess Brands (TWNK US)
COMPANY DESCRIPTION
Introduced in 1919 and relaunched in 2013 followed by Apollo Global Management and Metropoulos & Co's acquisition from bankruptcy, Hostess Brands, Inc is a sweet snacks packaged food company headquartered in Lenexa, KS. Hostess develops, manufactures, markets, sells and distributes packaged sweet snacks under Hostess® brand (products such as the iconic Twinkies®, CupCakes, Ding Dongs®, Donettes®, and Zingers®), Voortman® brand (cookies, wafers and sugar free products), and other brands such as Dolly Madison®, Cloverhill®, and Big Texas®.
BUSINESS MODEL
Hostess Brands, Inc., generates revenue from sale of sweet baked packaged snacks from its own brands along with private label products.
REVERSE MERGER DE-SPAC HISTORY
On 11/07/2016, Hostess Brands, Inc completed business combination with private equity company The Gores Group affiliate-sponsored special purpose acquisition company (SPAC) Gores Holdings (GRSH) and began trading on NASDAQ Capital Market. The deal was first announced on 07/05/2016 and values the sweet goods company at an enterprise value of $2.3 billion. Hostess closed on the first day after de-SPAC at $11.99 (+4.44%).
Apollo Global Management and C. Dean Metropoulos & Co. held an approximately 42% combined stake in the Company after the acquisition.
Hostess Brands, Inc was included in the IPOX® 100 U.S. Index (ETF: FPX US, FPX LN) on 03/21/2022 and has gained +34.61% since addition to the indexes.
