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Hostess Brands Announces Sale Agreement With Gores Holdings
- Client News
- July 5, 2016
As reported by The New York Times, Bloomberg, The Wall Street Journal and other media outlets, Hostess Brands LLC announced it has entered into a definitive agreement with Gores Holdings, Inc., a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC. This transaction will introduce Hostess as a publicly listed company, with an anticipated initial enterprise value of approximately $2.3 billion.
Funds managed by affiliates of Apollo Global Management, LLC and C. Dean Metropoulos and family, the current majority owners of Hostess, expect to hold an approximately 42 percent combined stake in Gores Holdings upon completion of the transaction. Dean Metropoulos and William Toler will continue to lead the company as Executive Chairman and Chief Executive Officer, respectively.
The transaction has been unanimously approved by the boards of directors of both Gores Holdings and Hostess, and is expected to close in the third quarter of 2016, subject to customary closing conditions. Upon closing of the transaction, the name of the company will be changed to Hostess Brands, Inc.
The Paul, Weiss team acting as legal advisor to C. Dean Metropoulos and his family included corporate partners Edward Ackerman and John Kennedy and counsel Caith Kushner; tax partners Jeffrey Samuels, Scott Sontag, Patrick Karsnitz and David Mayo; and employee benefits partner Lawrence Witdorchic and counsel Jason Ertel.