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.
In the sustainability arena, objective endorsement by a third party, particularly an NGO with credibility levels among consumers that even Unilever can only dream of, is an extremely valuable commodit...
An eye-catching tech move from Tesco has been revealed this week - and one that has echoes of one of Amazon's latest initiatives in the US....
Danone has appointed a new executive to lead its early life nutrition business, which features brands including Aptamil and Nutrilon....
- Rise of prepared foods in US grocers - analysis
- How are brands organising for e-commerce?
- Hershey results, outlook, M&A - the top takeaways
- Free-from firm BFree Foods - bitesize interview
- Work on sugar could stir more clean-label concerns
- Fazer buys European biscuit brands from Mondelez
- Murray Goulburn accused of "misleading" the market
- Kellogg launches Special K breakfast quiches
- Mondelez sees stronger margins, LFL growth
- Mead Johnson hails "improvement" despite Q1 falls