Hackman Capital Partners Wins Bid for Hostess Brands’ Assets

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Los Angeles Investment Firm Acquires 140 Properties and Equipment Assets from Bankrupt National Bakery Brand

Hackman Capital Partners announced today that the firm was the winning bidder for the remaining assets of the company formerly known as Hostess Brands Inc. The auction took place on August 16, 2013 in New York City where Los Angeles-based Hackman Capital Acquisition Company, L.L.C., an affiliate of Hackman Capital Partners, served as stalking-horse bidder at the auction.

In July, Hostess Brands won court approval to unload the remainder of its assets at auction, including certain real estate, machinery, equipment and fleet assets located in 34 states that were not sold after the company ceased operations in November 2012. Hackman Capital Partners immediately began negotiating with the estate to purchase the real estate and equipment. The estate had originally intended to sell these assets off individually or in small batches; however, Hackman Capital Partners offered to purchase all of the remainder in bulk.

According to Michael Hackman, Founder and Chief Executive Officer of Hackman Capital Partners, “the Hostess bankruptcy translated into a rare opportunity to acquire significant real estate and equipment at one auction.” Hackman also noted that the firm’s willingness to commit to purchase all remaining assets together provided valuable confidence to the debtors’ estate.

After extensive negotiations, Hackman Capital Acquisition Company, became the stalking horse bidder after being one of nearly 400 parties that submitted bids for the assets between May and June of this year. Hackman placed a bid for all 140 Hostess properties nationwide, as well as other company assets. The firm intends to liquidate all properties and assets.

“As one of the largest wholesale bakers and distributors in the United States, Hostess Brands’ properties were strategically located with great visibility and recognition within their respective communities,” said Hackman. “Many of the properties are in strong markets and on major regional distribution routes. This visibility and recognition has manifested itself in heightened interest and demand for the properties.”

Hackman Capital Partners specializes in this sort of niche transaction involving both real estate and equipment and sourced through complicated bankruptcies, turnaround and financial restructurings. With the Hostess acquisition, Hackman Capital Partners, through its affiliated entities, currently owns more than 270 facilities throughout the U.S., totaling 25 million square feet.

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More About Hackman Capital Partners
Founded in 1986 and headquartered in Los Angeles, Hackman Capital is a privately held, asset-based investment firm that focuses on the acquisition of industrial real estate and the purchase and sale of industrial equipment. The firm currently owns, through its affiliated entities, more than 270 facilities throughout the United States, totaling 25 million square feet and more than 20,000 acres of developable land. Hackman Capital also has conducted hundreds of equipment acquisitions, dispositions, and liquidations on four continents. With more than 27 years of experience in acquisition, redevelopment and asset management, Hackman Capital is known across marketplaces for its ability to successfully navigate complex transactions and financial restructurings involving real estate and equipment. The company is based in Los Angeles and oversees its Midwest, Mid-Atlantic and Southeast operations, from its regional offices in Columbus, Ohio and Boston, MA. For more information, visit http://www.hackmancapital.com.

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Susan Skros
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