Pabst Brewing Co. owner considering purchase of Hostess?

Bloomberg is reporting tonight that C. Dean Metropoulos & Co., an Irving, Texas private equity firm that owns Pabst Brewing Co., has expressed an interest in purchasing Hostess, which today announced plans to liquidate, eliminating around 18,000 jobs.

Twinkies and beer? Sounds good — financially speaking, that is.

  • http://www.facebook.com/greg.lerbakken Greg Lerbakken

    i hope pbr buys them and moves hostess to right to work state!

    • http://twitter.com/thetugboatphil TugboatPhil

      Ya beat me to it, Greg!!

    • http://twitter.com/Kennan100 Kenna Neel

      C. Dean Metropoulos & Co., an Irving, Texas private equity firm that owns Pabst Brewing Co. >>Yep! Texas is a Right To Work State! (Listening much Walmart strikers?)

  • http://twitter.com/crazytas1 ricci

    hope he does and hope its a right to work company

  • Terry_Jim

    Too TASTY To Fail.

  • WilliamAmos

    Obama you didnt build that.

    • TwitWit

      I doubt Obama has ever had a Twinkie or PBR. Those two aren’t just American.. they’re blue-collar American.

      • GaryTheBrave

        Obama is probably thinking, “Twinkie sounds a lot like Twitchy. Definitely a right wing nut job company. Better get the FTC to disapprove it.”

      • stuckinIL4now

        Maybe not a PBR, but I’d bet Twinkies were looking awfully good to young Barry to quell the munchies after a choom session.

    • tredglx

      Ah but he did, indirectly. Bad policies build bad economies, which build bad markets, which translate into bad sales and shrinking revenues.
      …everybody say thank you to the nice man…

  • http://twitter.com/thetugboatphil TugboatPhil

    “There’s no place that I’d rather be than right here,
    With my Red neck, White socks and Blue Ribbon Beer!
    (and a few Twinkies!)”

    • tredglx

      Ah, classic Johnny Russell. I miss that ol’ boy.

    • http://www.reverbnation.com/markchristopherfrimmel/songs markchristopher

      Yummm!

    • http://www.reverbnation.com/markchristopherfrimmel/songs markchristopher

      Yummm!

  • linzyloo2

    PBR and hohos??? Two of my favorites together. Sounds nice!!!

  • scubaski00

    Beer soaked twinkles…is that like the poor mans tiramisu?? Lol

  • tredglx

    My guess would be that if PBR does buy Hostess and resume baking, that they WILL move the ops to a RTW state. No corporate board worth it’s salt is ignoring what these unions are doing to companies in non-RTW states, and if they have the chance, they’re consolidating their ops in more business-friendly states and cities.

  • traffic_robot

    Best quote in the article, “Shedding the
    complications of the unions and old plants makes it even more
    attractive.” If Unions enjoy their role as whipping boy in corporate board rooms, keep it up…

  • bob miller

    this is worse that “GENERAL MOTORS” GOING DOWN. think back to the products that go into baking. eggs, flower, sugar ! the trucks that deliver the products. the chicken farms that produce eggs for them the farmers who grow the wheat for the bread and, and , and , its just goes on way down a huge list. ** they will get bail out money for our new president or a new owner. its worth to much to shut down forever.

  • TocksNedlog

    It’s a cheap crap marriage made in trailer park heaven!

  • http://www.facebook.com/anthrocoon Bob Nelson

    (Blue Velvet: Dennis Hopper & Kyle MacLachlan): “What kind of beer do you like?”—“Heineken.”–“Heineken! F— that s—! PABST! BLUE! RIBBON!!!”

  • SineWaveII

    Oh boy, I can’t wait to try the Colt 45 pies, the Lone Star Ho-Hos, Old Milwaukee Twinkies and the Pabst Blue Sno-Balls. Yes sir get your buzz and your sugar-high at the same time, from one quality product.
    I don’t see this going through for two reasons.
    1. Pabst would still have to negotiate with the unions and would soon find themselves in the same position as Hostess management.
    2. Obama would interfere with any union-busting move such as moving to a right-to-work state, therefore they would not be able to make the company any more profitable than current management can. They would simply end up endangering their own profit margin. Once they are aware of this they will back out of this offer. Obama is such a damper on the business climate you would be foolish to do any serious acquisition or expansion as long as he’s in power.

    • scrubjay

      They would only have to buy the trademark and recipe.

      • SineWaveII

        That makes no sense whatsoever. Hostess would be stupid to just sell their trademark and recipe. If they did that, how would they ever get someone else to buy the rest of the company?
        To get the recipes and trademarks a buyer would have to agree to acquire the rest of the company which includes its debt and to honor all of its contracts including the union contracts.
        If they just agreed to sell their trademarks and recipes it would leave the Hostess investors with nothing of value to sell to pay off their debt. That would be beyond stupid.

        • scrubjay

          Getting out of the union contracts is the whole point. It is what bankrupted Hostess. There is no “rest of the company” left. They are bankrupt. They are just liquidating assets.

          • SineWaveII

            You don’t understand how it works.
            Here’s an example for you. Suppose you were selling a house that has both a mortgage and a contractual obligation. Let’s say you contracted a termite company to spray the house every year for the next ten years. And you pay for that service quarterly.
            Now you’re selling your house. You would be asking at least enough to pay off the mortgage. You wouldn’t agree to keep the mortgage obligation for yourself so that the new owner lives mortgage-free while you would continue to make the payments. You would either ask at least enough to pay off the mortgage or you would transfer the mortgage to the new owner. You would be stupid to do any less. Now you have the termite contract you have two choices, ask enough for the house that you pay off the contract. And the termite company keeps treating the house for the remainder of the ten years or you would transfer the contract to the new owner and they would be responsible for the quarterly payments. You wouldn’t keep the contract for yourself and pay the quarterly payment on a house you don’t own.
            The same thing applies to selling a business with the debt being like the mortgage and all contracts including the union contract remain either payable or transferable.
            They have to be able to unload all of the company including its debt. You can’t take the just the best parts and sell only those.
            And they are not “bankrupt” that has to be declared by a judge. They are currently “out of business” and that’s not the same thing.
            Just because you sell a company doesn’t negate the company’s contracts. If they try to go back into business then they are obligated to honor all of the company’s contracts unless they are given permission not to by a judge. Or if they re-locate the business outside of the jurisdiction of the enforcement entities. (Outside of the US).
            Hostess would never sell their trademarks and other valuable assets without a plan to transfer or clear their debt. And the union would sue for breach of contract and they would win unless a judge rules against them which would be extremely unlikely.
            Now if the union contracts have expired the new owners might try to re-locate to a right-to-work state. But there’s where Obama steps in like I said. I say again “Obama is such a damper on the business climate you would be foolish to do any serious acquisition or expansion as long as he’s in power”.

          • scrubjay

            There is no “mechanics lien” on a bankrupt company as your termite example suggests. Hostess is not reorganizing (Chapter 11). They are closing the business (Chapter 7). That means bye-bye union contracts and debts. Buying the recipes and trademark is no different than buying the secretary’s office chair. It is just a liquidated asset.

          • SineWaveII

            That’s only true if they stay out of business. Wait and see.

          • SineWaveII

            To conclude our conversation here’s quote which I think will clear up the confusion for both of us
            (From Breitbart.com)
            “As a result, Hostess plans to continue with a hearing on Wednesday in which a bankruptcy court judge in White Plains, N.Y., will decide if the company can shutter its operations.”

            This is the point I was making. The company hasn’t been given permission to liquidate yet. If the judge rules for re-organization then it will be very difficult to find a buyer in the current climate

            Update: Ok, now what you described can happen. Man they must be in worse shape than I thought. That union was really stupid to go on strike with that situation. Now we’ll see if Obama stays out of it. I still believe that he won’t.

        • scrubjay

          Getting out of the union contracts is the whole point. It is what bankrupted Hostess. There is no “rest of the company” left. They are bankrupt. They are just liquidating assets.

      • SineWaveII

        That makes no sense whatsoever. Hostess would be stupid to just sell their trademark and recipe. If they did that, how would they ever get someone else to buy the rest of the company?
        To get the recipes and trademarks a buyer would have to agree to acquire the rest of the company which includes its debt and to honor all of its contracts including the union contracts.
        If they just agreed to sell their trademarks and recipes it would leave the Hostess investors with nothing of value to sell to pay off their debt. That would be beyond stupid.

  • Obamaroid_Ointment

    Great news! It just so happens that my favorite 7 course meal is a 6 pack of Blue Ribbon & a Twinkie.

    “Rednecks White Socks and Blue Ribbon Beer”
    http://youtu.be/4N3iVHxP8FQ

  • Moonwalker58

    I guess it doesn’t bother too many here that Hostess execs took 70-80% pay bonuses, then turned around and asked employees to take an 8% pay cut. Who ARE you people slicing your own throats? As for Obama, in the words of the wonderful Mrs. Barbara Bush, “Obama won, get over it, move on!”

  • http://www.reverbnation.com/markchristopherfrimmel/songs markchristopher

    Maybe once the union is dissolved someone can run the business. Just watch out for industrial sabatoge by the ex union workers. Run the ungrateful union workers completely out.

  • http://www.reverbnation.com/markchristopherfrimmel/songs markchristopher

    Maybe once the union is dissolved someone can run the business. Just watch out for industrial sabatoge by the ex union workers. Run the ungrateful union workers completely out.

  • TIMOTHY CARROLL

    Wow a six pack of Twinkie Talls on the shelves!