AP: Flower Foods to purchase six bread brands from bankrupt Hostess

STAFF REPORT

Flower Foods will acquire six bread brands from bankrupt baker Hostess in a deal announced late Friday, Jan. 11, 2013.

Saturday, Jan. 12, 2013, 1 p.m. — Flower Foods Inc., the parent company of Flower Baking of Bardstown, will acquire six bread brands from bankrupt baker Hostess for $390 million. The announcement came late Friday.

According to the Associated Press story posted Friday night, the fate of Hostess’ snack cakes remains undecided, though decisions on who will acquire those brands are expected to be announced in coming weeks. The company has said a wide variety of parties are interested in those brands, including Walmart and other snack cake bakers.

Thomasville, Ga.-based Flower Foods is known for its own line of Tastykakes snack cake, as well as a variety of bread brands that include Nature’s Own and Cobblestone Mill.

Flower’s bid will require approval from the bankruptcy court.

The company submitted two bids; a $360 million bid for 20 bakeries, 38 depots and the Wonder, Nature’s Pride, Butternut, Home Pride and Merita bread brands, and a separate $30 million bid for Beefsteak. According to Hostess, these brands generated just under $1 billion in sales last year, with the Wonder bread brand accounting for half of that. The company plans to finance the purchase with a mix of cash and debt.

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