Fri, Apr. 24, 7:00 AM
- Apollo Global Management (NYSE:APO) and Dean Matropoulus are looking to sell Hostess after only holding the brand for about two years, according to the New York Post.
- Sources indicate at least one buyer is willing to pay the $2B price tag.
- Hostess was sold out of bankruptcy for $410M and now operates under a more cost-efficient structure.
- Analysts think Hostess could be grown to a billion-dollar brand.
- Snack rivals includes Mondelez International (NASDAQ:MDLZ), Hershey (NYSE:HSY), Flower Foods (NYSE:FLO), and Grupo Bimbo (OTCPK:GRBMF).
Oct. 2, 2013, 3:11 AM
- Archer Daniels Midland (ADM) is reportedly close to selling its cocoa business to Cargill in a deal that could be worth up to $2B.
- The divestiture would further strengthen ADM's shift towards the grains industry as it completes its $3B acquisition of GrainCorp. The transaction would also reduce ADM's exposure to the lower profitability that's affecting the cocoa sector.
- The deal would create a global price-setting giant to rival Zurich-based Barry Callebaut (BYCBF.PK), the world's biggest producer of industrial chocolate products. Cargill and Barry Callebaut would account for over 50% of world capacity.
- Food producers that could be affected include MDLZ, HSY, RMCF, KRFT, NSRGY.PK.
- ETF: NIB
HSY vs. ETF Alternatives
The Hershey Co is engaged in the manufacturing, marketing, selling and distributing chocolate and sugar confectionery products, pantry items, such as baking ingredients, toppings and beverages; and gum and mint refreshment products.
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