Innovative marketing combined with a bundled sale of real estate and industrial assets attracts multiple offers.
NORTHBROOK, Illinois - (October 03, 2013) – Hilco Real Estate announced the completion of the Old HB, Inc. (f/k/a/ Hostess Brands, Inc.) asset sale which the company was awarded in December 2012. The completed transaction yielded $62.5 million for 140 properties, machinery and equipment, and thousands of trucks. The real estate, consisting of bakeries, depots, distribution buildings, and retail outlet locations spread across 34 states was sold to investment firm, Hackman Capital Partners, LLC based out of Los Angeles. Hilco Real Estate was the exclusive national disposition agent for the sale.
Greg Apter, President of Hilco Real Estate, said the company received hundreds of bids for individual properties. “We conducted a pre-auction process that allowed individual bidders to compete on an even plain with interested bulk bidders. After comparing the individual bids against the portfolio bids, including taking into consideration holding costs and likely residual real estate values, Hilco and Old HB, Inc. concluded that a bulk sale, inclusive of real estate and equipment, would yield the best result for our client.” The 140 properties Hackman purchased include former bakery plants in Los Angeles and Oakland, California, Wayne, N.J., St. Louis, Philadelphia, Cincinnati and Defiance, Ohio and specifically include 3,400 trucks and delivery vans, as well as distribution and retail buildings that once sold the trademark Twinkies and Wonder Bread products.
“Hilco Real Estate used a highly innovative and effective marketing campaign to successfully close this deal,” said Joel Schneider, the team lead for the sale. “Within approximately 90-days, Hilco Real Estate attracted over 6,000 prospective buyers which led to over 400 offers which is nearly unheard of in this short amount of time.”
The national and local marketing campaign consisted of print advertising, web site listings, electronic media, public relations and signage, all of which steered potential buyers to a dedicated Hostess real estate website and call center staffed by the Hilco sales team. This single point of entry drove all inquiries directly to Hilco wherein Hilco and its local broker network could communicate with and track all prospective bidders. Hilco utilized an electronic data room to quickly and securely disseminate property due diligence information to potential buyers. Key highlights of this campaign include:
- Over 30,000 downloads of due diligence documentation
- Over 6,000 signed confidentiality agreements
- 430 + offers received prior to the bid deadline
- 400+ on-site inspections
“Hilco Real Estate was able to pull together a rare, yet very attractive opportunity to acquire quality real estate and equipment in one shot,” said Michael Hackman, Chief Executive Officer of Hackman Capital Partners. “We were impressed with the Hilco Real Estate Team and their focus on both the commitment to their client, as well as to our needs as we moved through their sale process.”
As Old HB’s exclusive real estate advisor, Hilco was involved early on in the sale process, valuing all 260 owned locations. Approximately 120 of the properties were purchased by Metropoulos & Co./Apollo Global Management LLC, Flowers Foods, and U.S. Bakery, Inc. as part of their respective combined brand/asset purchases of specific Old HB brands, including Wonder Bread and Twinkies. The company, formerly known as Hostess Brands Inc., announced last year that it was shutting down its business and selling all of its assets in a bankruptcy and liquidation. In December 2012, Hilco Real Estate was appointed as the exclusive real estate advisor to Old HB, Inc. with approval from the United States Bankruptcy Court.
For more information, please visit www.hilcorealestate.com.
About Hilco Real Estate, LLC: Hilco Real Estate (HRE) provides a full suite of real estate monetization services including fee based disposition services, owned and leased property acquisitions and sale/leaseback transactions for both healthy and distressed companies. HRE also provides lease restructuring services to help lessees mitigate their lease-related financial obligations.
Hilco Real Estate clients include retail businesses, commercial and industrial concerns and residential real estate. Companies served by Hilco Real Estate may be in a turnaround or bankruptcy process, or financially-sound companies undergoing strategic restructuring. The company competes in a very crowded real estate brokerage market by offering unparalleled experience in the distressed assets field.
Hilco Real Estate, which is headquartered in Northbrook, Illinois, is a division Hilco Global. For more information please visit www.hilcoglobal.com