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.
Amid significant pressure on profits from its Splenda sucralose business, UK-based food ingredients group Tate & Lyle has this morning (21 April) announced plans to try to "maximise returns"....
Four campaign groups in the US have urged the country's Food and Drug Administration to close a "loophole" in regulations on food additives and bring the rules - due to be finalised by August next yea...
The Cargill meat processing facility in Hazleton, Pa., has become the company's first certified landfill-free production site. ...
- Nomad's post-Iglo opportunities
- Comment: Nestle reacts to world of 3G and Buffett
- Focus: Can Arla jump-start UK flavoured milk?
- What the analysts say: Nestle's Q1
- The just-food interview: Bega Cheese CEO
- Arla to launch protein dairy drink in UK
- Pork Farms' Kerry pastry deal nears green light
- McCormick to move roles to Poland
- UPDATE: Iglo Foods sold to Nomad for EUR2.6bn
- ABF grocery profits up but pressure on bread