Flowers Foods, Inc. on Feb. 28 announced its stalking horse bid for the largest bread brands and related assets of Hostess Brands, Inc. was declared the highest and best bid, eliminating the need for an auction. Flowers stalking horse bid for the Beefsteak rye brand was topped by Bimbo Bakeries USA.
Included in the victorious bid were Hostess brands including Wonder, Nature’s Pride, Merita, Home Pride, and Butternut bread; 20 baking plants; and 38 depots. Flowers bid $360 million for the assets. The auction had been scheduled for the morning of Feb. 28.
“This transaction now moves to the next phase, which is a review and approval of Flowers’ bid by the bankruptcy court overseeing Hostess’ bankruptcy case at a hearing scheduled for March 19,” Flowers said.
In the case of its Beefsteak bid, Flowers chose not to increase its bid from $30 million after Bimbo Bakeries bid $31.9 million.
“We are pleased Flowers won the bid for Hostess’ primary bread brands and bakeries without the need for an auction,” said George E. Deese, Flowers Foods’ chairman and chief executive officer of Flowers. “Now we move forward with the next step, which is the bankruptcy court review. Following that, the transaction will continue through the regulatory process before it can be finalized. We expect it could be several months yet before it’s finalized.”
Hostess will ask the U.S. Bankruptcy Court for the Southern District of New York to approve both transactions at a hearing on March 19.
“The proposed sales will result in significant proceeds for the benefit of the company’s stakeholders and ensure the beloved bread brands can continue to be enjoyed for years to come,” said Gregory F. Rayburn, chairman and c.e.o. of Hostess.
