Billionaire private-equity mogul Leon Black is the new Mr. Twinkie.
Black’s Apollo Global Management was the only entity to make a bid for the snacks business of bankrupt Hostess Brands — grabbing ownership of the stable of well known brands for $410 million.
The deal — first reported on The Post website yesterday — means lovers of Twinkies, Ding Dongs, Sno Balls and other Hostess snack cakes could see their favorites back on store shelves by September, sources said.
But for the 18,000 workers who lost their jobs in November when Hostess shut down, this is not good news. Apollo will purchase and run some plants but will not look to hire all the laid-off bakers, sources close to the company said.
The firm, known for making money off distressed assets, teamed with veteran food exec Dean Metropoulos on the bid for the business, which also includes Ho Hos, Donettes and Dolly Madison.
Apollo plans to outsource distribution to third-party drivers, and there is talk that much of Hostess snack production will be done through existing bakeries — not at one or more of the 33 shuttered Hostess bakeries.
Hostess canceled an auction for the snack business after no other qualified bids emerged by a 5 p.m. deadline yesterday.
Hostess creditor Silver Point Capital and Hurst Capital in recent days had submitted letters indicating an intention to bid, but in the end neither stepped up to the plate with a firm proposal.
There were competing bids for Hostess’ Drake’s brand, which includes Devil Dogs, Funny Bones and Yodels. Suitors will compete against “stalking horse” bidder McKee Foods, the owner of Little Debbie, in an auction set for Friday.
Flowers Foods has already won an uncontested auction to buy most of Hostess’ bread business, which includes Wonder Bread.
The $640 million financing package to purchase and operate the Hostess snacks business consists of $240 million in cash and $400 million in loans, sources said.
Metropoulos has a long history of buying troubled food brands. In the spring of 2001, Dallas private equity firm Hicks, Muse, Tate & Furst teamed with Metropoulos to acquire Swanson frozen food, and Vlasic Pickle from bankrupt Vlasic International.
Metropoulos slimmed down the corporate headquarters and relied on a small group of six or seven people — including his family — to help him run all the brands. He also combined plants and cut benefits.