Flowers Foods Inc on Friday said it has agreed to buy Wonder and other well-known bread brands from Hostess Brands Inc for $390 million, as part of the latter company's bankruptcy reorganization.
The Georgia-based company said it entered one contract to pay $360 million for the Wonder, Butternut, Home Pride, Merita and Nature's Pride brands, as well as 20 bakeries and 38 depots. It also agreed to pay $30 million for the Beefsteak brand.
The Flowers purchase is subject to higher bids at a court-supervised auction, and requires approval by regulators as well as U.S. Bankruptcy Judge Robert Drain in White Plains, N.Y.
Hostess will ask that the auction take place on Feb. 28, with a hearing to authorize a sale on March 5.
The bakery company, which shut down operations in November following a crippling strike, is aiming to sell off all of its assets during a sale process that is expected to take months to wrap up. Its representatives have indicated they've already received substantial interest in all of Hostess's 30 or so brands, which include the iconic Twinkie, as well as a majority of its 36 plants, which include a kosher baking facility in New Jersey.
Flowers Foods is based in Thomasville, Ga., and owns brands such as Mrs. Freshley's and Tastykake. Its bread brands include Nature's Own and Cobblestone Mill.
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