Hostess Brands announced it is preparing to take its stock public, four years after the company laid off thousands of workers and announced it was going out of business.
Today, Hostess is running a leaner operation. The company is smaller with fewer employees, and a union does not represent those employees anymore.
Hostess, who has a deal with Gores Holdings, says the stock offering will place its value at roughly $2.3 billion, an amount that is 10.4 times Hostess’ estimated 2016 Adjusted EBITDA – earnings before interest, taxes, depreciation and amortization – of roughly $220 million.
In 2012 Hostess filed Chapter 11 bankruptcy protection and laid off 18,500 employees. Hostess came back in 2013 and consumers could once again purchase Hostess’ product that brought the company prominence in the snack market – Twinkies.