Wonder Bread has found a new home thanks to Flower Foods. According to the Associated Press on Jan. 11, the rival baker has put in a bid to purchase six of the Hostess bread brands for $390 million.
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
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