Last week, America was devastated by the news that Hostess (maker of the ubiquitous Twinkie) would file for bankruptcy.
Now Fortune’s Dan Primack has a report that could put the spring back in our step. Private equity firm Sun Capital is interested in buying Hostess.
Sun’s CEO, Marc Leder (host of the party where the infamous 47% video was recorded) told Fortune that he thinks he could reopen the factory and figure out a better deal with union workers (from Fortune):
“I think that we could offer a slightly better, more labour-friendly deal than what was on the table last week,” says Sun co-CEO Marc Leder, in an interview with Fortune. “We also think that one point the unions have made is that there hasn’t been a great amount of reinvestment in the business. We’ve found that investing new capital into companies like this can be very positive for brand, people and profitability… We would look to invest in newer, more modern, manufacturing assets that would enable the company to become more productive and to innovate.”
Innovate? Like, new treats? You have our attention, Mr. Leder.
He believes that he can make the company “profitable on an EBITDA” basis (Earnings before interest, taxes, depreciation and amortization) and doesn’t buy the argument that Americans are turning away from junk food.
“Do you see M&Ms or Mars having any trouble? Or Haagen Dazs or Godiva? People like to indulge in desserts. Obviously you don’t eat only Twinkies for breakfast, lunch and dinner, but people love them as a snack.”
He has a point there.
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