Flowers Foods Set to Buy Hostess Brands Including Wonder Bread

Wonder BreadFeb 27 (Reuters) - Flowers Foods Inc (FLO) is set to buy Hostess bread brands including Wonder bread for $360 million after no other bidder stepped up to make a competing offer, a source familiar with the matter said on Wednesday.

The bankrupt bakery company was set to run an auction on Thursday for the brands, which also include Butternut, Home Pride, Merita and Nature's Pride, but there will be no auction since there were no other bids, the source said.

There will be an auction for the Beefsteak brand, for which Flowers bid $30 million, since Hostess received a higher bid from Mexico's Grupo Bimbo, said the source, who declined to be named as the process is private.

Bimbo bid $1 million more for the Beefsteak brand, though its $31.9 million bid includes a $900,000 breakup fee.

The deal with Flowers is still subject to approval by a bankruptcy court.

Flowers agreed in January to be the "stalking horse" bidder, which set a floor for the bidding and was subject to a court-supervised auction.

Hostess declined to comment. Flowers and Bimbo were not immediately available to comment.

Hostess expects to run two more auctions next month. One would be for the Hostess snack cake brands, including Hostess Twinkies and Dolly Madison, for which private equity firms Apollo Global Management LLC and C. Dean Metropoulos & Co set the bidding at $410 million.

The other would be for its Drake's cake business and additional bread brands. So far, McKee Foods, maker of Little Debbie snack cakes, offered $27.5 million for Drake's, which includes Ring Dings, Yodels and Devil Dogs.

United States Bakery Inc, also known as Franz Family Bakery, agreed to pay $28.85 million for the Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brands. (Reporting by Martinne Geller in New York; editing by Soyoung Kim and Matthew Lewis)

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olympictorchrun4

Consumer wise up, read the ingredient list. All processed food is toxicated through the chemical process. Don't consume processed food so your body function healthier.

February 27 2013 at 11:15 PM Report abuse rate up rate down Reply
Minor Von

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February 27 2013 at 7:04 PM Report abuse +1 rate up rate down Reply
bigtaz19764932

very GOOD bread. Plus I took a Twinkies in my lunch everyday for 20 year's never got above 155lbs.WHY

February 27 2013 at 2:01 PM Report abuse rate up rate down Reply
sean0007

THE NAME WONDER BREAD COMES FROM THE THE IDEA THAT IT'S A WONDER ANYONE IN THEIR RIGHT MINDS CAN EAT THAT SHIIIIIIIIIIIT!

February 27 2013 at 1:37 PM Report abuse rate up rate down Reply
Lenalynne

Great, when will Home Pride Bread be on the super market shelves?? I miss my bread!!

February 27 2013 at 1:24 PM Report abuse rate up rate down Reply
pmrspnj2

HORRAY. WE WANT OUR DEVIL DOGS AND TWINKIES BACK SO AMERICA CAN GET EVEN MORE OBESE.

February 27 2013 at 1:20 PM Report abuse -1 rate up rate down Reply
1 reply to pmrspnj2's comment
Koz

It aint Twinkies that make people fat , it is just people stffing their faces.

February 27 2013 at 1:26 PM Report abuse rate up rate down Reply
Bonnie

Yes, I hope they reopen the bread making outlets.

February 27 2013 at 1:06 PM Report abuse rate up rate down Reply
Bonnie

Yes, I hope they reopen the bread outlets-our local one was not a union shop.

February 27 2013 at 1:05 PM Report abuse rate up rate down Reply
Bonnie

Yes, I hope they reopen the bread outlets-I love my Merita!

February 27 2013 at 1:04 PM Report abuse rate up rate down Reply
hello

glad it is not going to bimbo, I have nothing against them. They are becoming quite the monopoly locally and I am hopefull that wonder bread stays the top notch stuff it is.

February 27 2013 at 12:56 PM Report abuse rate up rate down Reply