The maker of Nature's Own and Tasty Kake is looking to purchase such Hostess bread brands as Wonder, Nature's Pride and Butternut with the proposed bid.
Flowers Foods Inc. announced Friday (Jan. 11) that it would purchase Wonder, Nature’s Pride and three other bread brands from bankrupt Hostess for $360 million.
Flowers signed two asset purchase agreements with Hostess Brands, Inc. as the stalking horse bidder for the above brands as well as the Merita, Home Pride and Butternut bread brands; 20 bakeries; and approximately 38 depots. 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 Irving, Texas-based Hostess. The company has stressed it needs to move quickly in the sale process to capitalize on the flood of consumer nostalgia sparked by its liquidation announcement.
If the 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.
"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," George E. Deese, chairman and chief executive officer of Flowers Foods, said in a statement. "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."
Flowers Foods plans to finance the transactions through a mix of available cash on hand and debt.