Takeover interest is swirling around Hostess Brands, according to Reuters.
The news outlet says General Mills, Mondelez International, Pepsi and Hershey are among several companies interested after Hostess raised prices on certain products to boost revenue. Hostess shares popped over 25 percent Friday afternoon, pushing the company’s market value to nearly $4 billion.
Hostess is working with Morgan Stanley as it mulls offers.
Hostess was founded in Lenexa in 1930 and has had a production presence in Emporia for decades. The company filed for bankruptcy in 2004 and 2012. In the second proceeding, C. Dean Metropolous and Apollo Global Management purchased Hostess, made Emporia the company’s production hub and reaped immediate financial rewards. The company returned to the stock market in 2016 and was generating revenue of over $1 billion by 2020.
