Blog: Hostess gets set for first auction

Michelle Russell | 28 February 2013

As the industry geared up to find out today (28 February) whether Flowers Foods' bid to acquire the Hostess Brands bread business is successful, we learn that the only auction to now take place will be for the Beefsteak brand.

Flowers was today due to take part in an auction to buy Wonder Bread and some other brands owned by Hostess for US$360m. However, after no other bidder stepped in to make a competing offer, it seems the brands will go to Flowers, pending approval from a US bankruptcy court, the Wall Street Journal reported.

There will, however, be an auction for the Beefsteak brand, according to the publication. Mexican bakery giant Grupo Bimbo made an opening bid of US$31.9m for the brand to ensure its participation in today's auction. Bimbo bid $1m more for the Beefsteak brand, though its bid includes a $900,000 breakup fee.

Flowers Foods earlier agreed to serve as the stalking horse for various brands including Wonder Bread, setting a floor price of $30m in a deal that was approved by the bankruptcy court and meant to drum up enthusiasm for the assets.

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

The third auction would be for its Drake's cake business and additional bread brands. To date, McKee Foods has offered $27.5m for the brand, which includes Ring Dings, Yodels and Devil Dogs.

Keep an eye on just-food for any updates on the auction.

 


BLOG

Kellogg takeover chatter cools

Market speculation over a possible takeover of Kellogg surfaced this week, with the snacks-to-cereal maker linked to both Kraft Heinz and Coca Cola Co....

BLOG

More understanding needed of GMOs among consumers

The introduction of legislation requiring the labelling of GMOs in the US has gathered widespread public support....

BLOG

UK report examines "risks and challenges" to food system from climate change

The impact on the global food system is one of "six key priority areas" highlighted in the UK Climate Change Risk Assessment 2017 report, which sets out "the most urgent risks and opportunities" arisi...

BLOG

Brexit – the just-food confidence survey

Following last month's referendum in the UK on the country's membership of the European Union, the repercussions from the decision to leave have been felt far and wide....

just-food homepage



Forgot your password?