About five months after participating in a reverse merger that resulted in Hostess Brands (NASDAQ: TWNK) returning to the public markets, Apollo Global Management is set to exit most of its stake in the company. The buyout giant will sell 18.7 million shares in a public offering, according to an SEC filing, reducing its holding from 16.9% to 2.6%. Fellow owners Metropoulos & Co. and The Gores Group will sell an additional 1.4 million shares in the offering and retain stakes of 24.9% and 12.8%, respectively.
The sale will culminate a profitable past four years for Apollo, dating back to the firm’s purchase (alongside Metropoulos) of certain Hostess assets—including the company’s Twinkies, Ho Hos and Ding Dongs snack cake brands—for $410 million in 2013. After cutting costs, instituting operational changes, and extracting a couple large dividends, Apollo helped the company go public last November, meeting a sterling reception: Hostess stock has risen roughly 30% since its debut, closing Monday at $15.21.
And Apollo shares have experienced a corresponding bump. Trading on the NYSE under the APO symbol, the firm’s stock price has climbed from $17.94 at close on November 7 to $25.51 at the end of Monday, an increase of 42%.