Hostess Brands Inc. accepted a $360 million bid from Flowers Foods Inc. for its Wonder, Nature's Pride, Merita, Home Pride, and Butternut bread brands. The deal also would include 20 bakeries and 38 depots.
The bid was named the highest and best, eliminating the need for the auction that had been scheduled for Feb. 28. The deal still needs to be reviewed and approved by the bankruptcy court at a hearing scheduled for March 19, 2013.
"We are pleased Flowers won the bid for Hostess' primary bread brands and bakeries without the need for an auction," George E. Deese, Flowers Foods' chairman of the board and CEO, said in a statement. "Now we move forward with the next step, which is the bankruptcy court review. Following that, the transaction will continue through the regulatory process before it can be finalized. We expect it could be several months yet before it's finalized."
Hostess also announced that its Beefsteak brand will be sold to Mexico’s Grupo Bimbo for $31.9 million, beating out Flowers’ $30 million bid.
"The proposed sales will result in significant proceeds for the benefit of the company's stakeholders and ensure the beloved bread brands can continue to be enjoyed for years to come," Hostess CEO Greg Rayburn said in a statement.