Will Twinkies prove a sweet deal for Mexican billionaire?
Published November 18, 2012
It’s a golden opportunity.
Hostess Brands is going out of business and it’s possible the company’s most iconic sugary confection – Twinkies — could be bought by a Mexican business.
Mexico’s Grupo Bimbo, the world’s largest bread-baking firm, could be on the short list for acquiring some of the Texas-based Hostess’ foodstuffs, according to Forbes. Grupo Bimbo already owns parts of Sara Lee, Entenmann’s and Thomas English Muffins.
Others firms that could be in the running include ConAgra and Flowers Food, the American company behind Nature Valley granola, as well as McKee Foods, baker of Little Debbie snack cakes, the Christian Science Monitor reports.
Pepperidge Farm, a division of Campbell Soup Co., is also considered a prospective buyer, analysts told Fox Business.
The Monitor reports Bimbo has already been present around the bankruptcy proceedings that have haunted Hostess for a decade, in a bid to further expand its North American portfolio and pad its $4 billion net worth.
According to Forbes, Bimbo put in a low-ball bid of $580 million a few years ago. But Hostess may turn out to be a steal with a reported worth of $135 million today.
The Hostess brands “most likely will be purchased by a competitor that will bolt the additional sales to a more efficient delivery system,” David Pauker, a food industry restructuring specialist, tells Reuters. “The company itself won’t survive.”
Daniel Servitje Montull runs Grupo Bimbo along with his family. Under his leadership, which began in 1997, Daniel Servitje positioned the company for rapid growth. This included a battle with Mexico’s tortilla king and bringing white bread to Latin American markets, according to Forbes.
Today Bimbo, which reportedly competes with U.S. companies like Kellogg, Hershey and General Mills, is a $10 billion sales business with $200 million cash on its balance sheet, according to Forbes.
That’s a lot of Twinkies.