Industry News

Flowers Foods to acquire certain Hostess bread brands, bakeries

Flowers Foods Inc., Thomasville, Ga., announced on Jan. 11 that it has signed two asset purchase agreements with Hostess Brands Inc., Irving, Texas, as the “stalking horse bidder” for certain Hostess assets. One of the agreements provides for the purchase by Flowers of the Wonder, Nature’s Pride, Merita, Home Pride and Butternut bread brands; 20 bakeries; and approximately 38 depots for a purchase price of $360 million. The other agreement provides for the purchase by Flowers of the Beefsteak brand for $30 million.

The transactions are subject to a court-approved bankruptcy process being initiated by Hostess. If Flowers’ “stalking horse” bids are approved by the bankruptcy court, the bids would then be subject to a competitive auction process to be held several weeks from now. The company would expect to close the transactions shortly following court approval if it is selected as the winning bidder. The transactions also are subject to regulatory clearance.

Flowers Foods has previously stated its interest in acquiring certain Hostess assets, should they become available. “This agreement is consistent with Flowers Foods’ long-term growth objectives to reach significantly more of the U.S. population with its fresh breads, buns, and rolls,” says George E. Deese, chairman and CEO of Flowers Foods. “We believe these assets would enhance our ability, over time, to provide more U.S. consumers with quality baked foods at a good value through existing and new retail and foodservice customers.”

Based on the current bid price, Flowers Foods would expect the transactions to be accretive to earnings in 2013. Flowers Foods plans to finance the transactions through a mix of available cash on hand and debt.

Source: Flowers Foods, PR Newswire

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

James Skinner Baking

An inside look at James Skinner Baking, a modern artisan bakery famous for its Danish.

12/4/14 2:00 pm EST

How a DSD Solution with Sales Forecasting can reduce your Stale Percentages up to 50%

Expert presenters will address how you can improve your order accuracy and account service times and how sales forecasting DSD solutions can reduce your stale percentages.

Snack Food & Wholesale Bakery Magazine

SFWB december 2014

2014 December

December's Snack Food & Wholesale Bakery publication features our cover report: "The J. Skinner Difference" Plus Much More!

Table Of Contents Subscribe

Holiday Baked Goods

What type of baked goods do you buy the most of during the holidays?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!