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Hostess sells bread business to Flower Foods...

Discussion in 'Off-topic Zone' started by Risen Star, Jan 12, 2013.

  1. Risen Star

    Risen Star Likes Collector Zone Supporter

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    Hostess has found a new home for its most popular breads, including the iconic Wonder bread.

    The bankrupt maker of Twinkies, Devil Dogs and other snack cakes said late Friday that it selected bids by rival bakery Flower Foods Inc. to buy six of its bread brands for $390 million. Flower Foods, based in Thomasville, Ga., is best known for Tastykakes but also makes breads including Nature's Own and Cobblestone Mill.

    Hostess is expected to announce buyers for its famed dessert cakes in coming weeks. The company has said a wide variety of parties have expressed interest in its brands, including national supermarket chains and the makers of brand name packaged foods.

    Flower Foods was selected as the "stalking horse" bidder for the bread brands. That means higher competing bids can still be made and the final deal must be approved in bankruptcy court. The company made two separate bids for the Hostess breads; a $360 million bid for Wonder, Nature's Pride, Butternut, Home Pride and Merita, along with 20 bakeries and 38 depots. Another $30 million bid was made for Beefsteak.

    Taken together, Hostess said those breads generated just under $1 billion in sales last year, with Wonder bread accounting for about half of that. Flower Foods, which generates about $3 billion in annual sales, said it expects the deals to be accretive to its earning this year. The company plans to finance the deal through a mix of cash and debt.

    http://www.huffingtonpost.com/2013/01/11/hostess-wonder-bread-sale_n_2460546.html
  2. StevenOtero

    StevenOtero Well-Known Member

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    We can all sleep a little easier now
  3. vta

    vta The Proletariat

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    Devil Dogs are made by Drakes, not Hostess thank God. They day they go belly up is the day I go postal.
  4. Jammer

    Jammer Retired Air Force Guy Zone Supporter

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    I think Hostess owned Drakes.
  5. vta

    vta The Proletariat

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    [IMG]
  6. MichaelWinicki

    MichaelWinicki "You want some?" Staff Member

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    I'll tell ya...


    Ho-Ho's had better survive or there will be issues. :)

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