Flowers Foods Inc., Thomasville, Ga., completes the acquisition of Hostess Brands’ bread assets, including 20 bakeries; the Wonder, Merita, Home Pride, Butternut and Nature’s Pride brands; and 36 depots from Old HB Inc. (formerly Hostess Brands). The adjusted purchase price was $355 million.
According to Flowers Foods, the acquisition strengthens its position as the second-largest baker in the U.S. by adding brands and bakeries that will enhance the company’s ability to expand into new geographic markets. Flowers Foods has completed more than 100 acquisitions since listing publicly in 1968.
“These assets fit very well with our strategy to grow our fresh baked foods through market expansion and acquisitions,” said Allen L. Shiver, president and CEO. “Consumers across much of the country can expect to see these well-known and loved bread brands returning to store shelves over time.”
Flowers’ direct-store-delivery system reaches from Maine to Florida and extends throughout the South, Southwest and west to California. Over the last decade, the company has more than doubled the reach of its fresh bread brands—from 38% of the U.S. population in 2003 to 77% of the population today. “We will continue our methodical market expansion, re-introducing the newly acquired brands into markets we currently serve and into new markets as we steadily expand into new regions of the country,” Shiver explained.