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.
Singapore-based agribusiness group Olam International is to become a major international cocoa supplier after announcing a US$1.3bn deal for Archer Daniel Midlands' cocoa business....
Germany's competition watchdog has issued an interim injunction against retailers Edeka and Tengelmann over their planned deal over the Kaiser's supermarket chain....
The Aldersgate Group - an alliance of big business, NGOs and civil society pushing for a "sustainable economy" - has set out a new campaign calling for the introduction of a fiscal policy that tackles...
- General Mills US "priority" categories gain share
- Interview part 2: BRF CFO Augusto Ribeiro
- 2015 preview: A better deal for M&A sellers
- Interview part 1: BRF CFO Augusto Ribeiro
- Interview: How BRF plans growth in stagnant Europe
- Kraft to reappraise business, says new CEO Cahill
- General Mills earnings drop one-third
- General Mills outlines "aggressive" NPD drive
- PepsiCo opens snacks plant in Saudi Arabia
- Bimbo to buy Saputo's bakery arm