(MENAFN- ProactiveInvestors - N.America) Hostess Brands, the maker of Twinkies confectionery bars, is to be floated on the stock market with an expected valuation of US$2.3bn.
Gores Holdings Inc (NASDAQ:GRSH), a special purpose acquisition company sponsored by an affiliate of privately owned The Gores Group, will introduce Hostess as a publicly listed company.
Funds managed by Apollo Global Management LLC and C. Dean Metropoulos, the majority owners of Hostess, will have a combined 42% stake in Gores when the deal is completed.
Gores Holdings will change its name to Hostess when the deal closes, expected to be some time in the third quarter of this year.
Dean Metropoulos and William Toler will continue to lead the company as executive chairman and chief executive officer, respectively.
''This transaction better enables Hostess to continue executing on its long-term growth plan by providing greater access to capital to fund future innovation and acquisitions,'' a statement from Hostess claimed.
''We look forward to continuing both our strong organic growth through unique innovations and niche, strategic acquisitions, such as our recent acquisition of Superior Baking, which will extend Hostess''s consumer reach in the ''in-store bakery'' market and expand offerings to customers,'' Metropoulos said.
''This new phase in Hostess''s evolution and partnership with The Gores Group and our broader investor partners will continue to propel Hostess into a growing and innovative company with significant reach and potential long into the future,'' he added.
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