Hostess Brands, the maker of standard snack truffles together with Twinkies and Zingers, could be about to alter palms as soon as once more.
Reuters studies the corporate has change into a takeover goal, with General Mills, Mondelez, Pepsi and Hershey all exhibiting curiosity. The firm’s shares have soared greater than 20% since Friday as traders digest the rumors.
Hostess instructed Fortune that it doesn’t touch upon rumors or hypothesis.
Founded in 1930, Hostess has created a few of the most acquainted names in snack meals, however the 21st century has been rocky for the model.
It filed for chapter in each 2004 and 2012, a so-called “Chapter 22,” after its debt ranges soared and gross sales slumped. It was, at one level, owned by the identical firm that owns Pabst Blue Ribbon beer.
In 2016, issues appeared particularly dire, as it shut down baking operations and started liquidating property after failing to barter a labor contract with employees with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.
At the final minute, the corporate bought a majority stake to an funding agency, saving it as soon as once more and ensuing in it as soon as once more being publicly traded.
The firm has experimented with a number of new merchandise, which haven’t precisely taken the market by storm, together with a frozen deep-fried Twinkie and a more healthy Mini Muffin. Despite that, the model has circled and final 12 months generated income of over $1 billion.
That success could be, in half, what’s luring curiosity from potential acquirers. The undeniable fact that shares have flatlined as the broader Nasdaq market has elevated considerably this 12 months could even have spurred curiosity.
Reuters studies Hostess has employed Morgan Stanley to advise it as it considers gives.