Reuters reports that Flowers Foods will acquire Wonder Bread and some other brands - including Nature's Pride - for $360 million, "giving the No. 2 U.S. baking company a bigger slice of the fast-consolidating bread business."
Assuming that the deal is approved by the bankruptcy court judge overseeing Hostess''s financial affairs, Wonder Bread "will go to Flowers after no other bidder stepped up to make a competing offer ... Hostess, which is liquidating its business after 82 years, was set to run an auction on Thursday for the brands, but there will be no auction since there were no other bids."
According to the story, "Hostess expects to run two more auctions next month. One would be for the Hostess snack cake brands, including 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 auction 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."
Assuming that the deal is approved by the bankruptcy court judge overseeing Hostess''s financial affairs, Wonder Bread "will go to Flowers after no other bidder stepped up to make a competing offer ... Hostess, which is liquidating its business after 82 years, was set to run an auction on Thursday for the brands, but there will be no auction since there were no other bids."
According to the story, "Hostess expects to run two more auctions next month. One would be for the Hostess snack cake brands, including 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 auction 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."
- KC's View:
