, the maker of Twinkies, is weighing a potential sale amid interest from major companies in the food industry, according to a new report.
General Mills, Mondelez International, PepsiCo and Hershey are among the companies that have expressed an interest in, Reuters reported Friday, citing sources familiar with the matter. The outlet added that Hostess has hired Morgan Stanley for advice in handling negotiations, although sources noted that an agreement on a deal may not be reached and Hostess could opt against a sale.
Hostess began to attract potential acquisition interest after it raised prices on some of its products this year in an effort to boost revenue. Its shares, which had been down 1% year-to-date prior to the report, shot up by as much as 26% on the news Friday before settling around 21.7% at Friday’s close. Hostess Brands’ stock rose another 2.2% in after-hours trading as of Sunday afternoon.
FOX Business’ requests for comment from Hostess and the companies named in the Reuters report as its potential suitors weren’t immediately returned on Sunday.Post and Hostess have teamed up to recreate the childhood staple snack in cereal form. Hostess, which is based in Lenexa, Kansas, was founded in 1930 and has launched several iconic household brands – includingThe company previously filed for bankruptcy on two occasions in 2004 and 2012 as it struggled to come up with new snack foods to appeal to consumers and coped with a debt load it incurred under private equity owners.