Hostess Brands LLC, the maker of Twinkies and Ding Dongs, said on Tuesday it will be bought in a $725 million deal by an affiliate of private equity company Gores Group, which will then take it public.

The Kansas City, Missouri-based snack cake company, which was founded in 1919, will be acquired by Gores Holdings Inc (GRSH.O), a special purpose acquisition company (SPAC). Including debt, the total value of the deal is about $2.3 billion, Hostess said.

The company’s products, especially the golden, cream-filled Twinkies cakes, are ingrained in American pop culture and have long been packed in children’s lunch boxes.

SPACs such as Gores Holdings have no assets but use their IPO proceeds, together with bank financing, to take companies public through acquisitions. The Hostess acquisition is expected to close by end of summer and Gores will then change its name to Hostess Brands Inc.

Hostess sold itself in 2013 to private equity firm Apollo Global Management LLC (APO.N) and consumer industry investor C. Dean Metropoulos for $410 million.

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Source: reuters.com