The six brands covered by the bid include Nature’s Pride, Home Pride, Butternut, Merita and Wonder Bread plus 20 bakeries and 38 depots. A separate bid for $30 million was made for Beefsteak. Considered a “stalking horse” bidder, Flower Foods could still be outmaneuvered by another higher bid. Whatever the outcome, the bankruptcy court will have to approve the final bid and sale of the iconic Wonder Bread.
In the meantime, Hostess hopes to make an announcement regarding the buyers for its other dessert products. While it may take several weeks before the company reveals any information, there have been a number of parties, from brand name package food makers to a national supermarket chain, who have expressed an interest in the other Hostess brands.
Flower Foods, Inc. generates about $3 billion in annual sales. Last year’s sales for the Hostess bread brands generated just slightly shy of $1 billion and will add to Flower Foods overall earnings for the year. The company expects to finance this deal through a mix of cash and debt.
Sources: Associated Press
For more information on food & recipes, please contact firstname.lastname@example.org.
If you like what you read, please click on the "subscribe" link to receive email notification when other articles by this examiner are published. Don't forget to follow her on Twitter, Pinterest, Facebook and her food blog!
©2013 Susan Dusterhoft, All rights reserved. No part of this article may be reproduced without prior permissions from the author or Clarity Digital Group LLC d/b/a/ Examiner.com.