Flowers Offers 'Stalking Horse' Bid for Hostess Bread Brands
Flowers Foods Inc., the $2.8-billion baker based in Thomasville, Ga., on Jan. 11 said it signed two asset purchase agreements with Hostess Brands Inc. as the "stalking horse bidder" for certain Hostess assets.
One of the agreements provides for the purchase of the Wonder, Nature's Pride, Merita, Home Pride and Butternut bread brands plus 20 bakeries and approximately 38 depots for a total price of $360 million. The other agreement provides for the purchase by Flowers of the Beefsteak brand for $30 million.
With Hostess in court-approved liquidation, any asset sales are subject to an auction, which will not occur for another several weeks. But as a “stalking horse” bid, the Flowers offers set a minimum floor for these assets and include some fees to Flowers if the deal is canceled.
"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 Deese, chairman and CEO of Flowers Foods. Flowers bakes under such brands as Nature’s Own, Sunbeam bread, Tastykake and Mrs. Freshley’s.
See this timeline of events as reported on FoodProcessing.com:
- Hostess Files For Chapter 11 Again (01/12/2012)
- Largest Union Strikes Hostess Brands (11/09/2012)
- Hostess Files Bankruptcy Reorganization Plan (10/11/2012)
- Struck Hostess Brands to Liquidate (11/16/2012)
- Hostess, Union To Try Mediation (11/20/2012)
- Hostess Back to Liquidation (11/21/2012)
- Hostess Selects Four 'Stalking Horse' Bidders For Assets (02/08/2013)
- All Hostess Assets Sold Off (04/04/2013)