Flowers Foods to Acquire 6 Hostess Brands
Flowers Foods, Inc. has signed two purchase agreements with Hostess Brands, Inc., as the “stalking horse bidder” for certain Hostess assets. One of the agreements provides for Flowers’ purchase of the Wonder, Nature's Pride, Merita, Home Pride and Butternut bread brands; 20 bakeries; and approximately 38 depots for $360 million. The other agreement provides for the purchase of the Beefsteak brand for $30 million.
"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," said George E. Deese, chairman and CEO of Thomasville, Ga.-based 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."
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. Based on the current bid price, Flowers Foods would expect the transactions to be accretive to earnings in 2013.
Flowers Foods is the second-largest producer and marketer of packaged bakery foods for retail and foodservice customers in the United States.