Flowers Foods Inc. (NYSE: FLO) announced on Friday that it has signed two asset purchase agreements with Hostess Brands Inc. as the “stalking horse bidder” for certain Hostess assets.
One of the agreements provides for the purchase by Flowers of the Wonder, Nature’s Pride, Merita, Home Pride and Butternut bread brands; 20 bakeries; and approximately 38 depots for a purchase price of $360 million.
The other agreement provides for the purchase by Flowers of the Beefsteak brand for $30 million. The transactions are subject to a court-approved bankruptcy process being initiated by Hostess. If Flowers’ “stalking horse” bids are approved by the bankruptcy court, the bids would then be subject to a competitive auction process to be held several weeks from now. The company would expect to close the transactions shortly following court approval if it is selected as the winning bidder.
The transactions also are subject to regulatory clearance. Flowers Foods has previously stated its interest in acquiring certain Hostess assets should they become available.
See Sunday's edition for more details.