Hostess Brands Set To Go Public In The Third Quarter

Hostess Brands, best known for its popular and iconic "Twinkies" snack brand, said on Tuesday it has decided to go public and list its shares on a stock exchange just two years after emerging from bankruptcy.

Hostess Brands emerged from bankruptcy in 2013 and streamlined its production through upgrades and automated processes.

According to the Wall Street Journal, Gores Holdings Inc (NASDAQ: GRSH), a special-purpose acquisition company, will provide $375 million in cash that it raised through an August IPO for Hostess Brands.

Gores Group's CEO Alec Gores and Hostess owner Dean Metropoulos and affiliates associated with Gores have also committed $350 million to the deal.

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Once the IPO is completed, funds' management by the current majority owner of Hostess, namely Metropoulos and his family, as well as Apollo Global Management will own a combined 42 percent stake in Gores Holdings.

Hostess Brands also owns Ho Hos and Ding Dongs snack brands.

The Wall Street Journal noted that the IPO will provide the snack-maker with better access to capital and to fund future innovation and acquisitions.

Hostess Brands was founded in 1919 when it first sold the Hostess CupCake. The company boasted revenue of around $650 million for the full year ending May 31.