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.
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
To follow on from our earlier notice and after some hard work from our technical team, just-food is back live after today's power outage....
- Why personalisation will take-off in US food
- US food next wave on display at Winter Fancy Food
- Comment: Meal kits in US - don't believe the hype
- Interview: The Soulfull Project's mission
- General Mills sales woes continue - analysis
- Post Holdings 'close to acquiring Weetabix'
- Kraft Heinz cuts jobs in US, Canada
- Recipe-kit firm HelloFresh launches into UK retail
- UK, EU food faces "more costly" trade, warns study
- Mondelez set for union crosshairs next week