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.
Wow. Your correspondent is penning this blog following precious little sleep after the combination of a humid night in London and the emergence of the most significant event in UK history since 1945 m...
The last three Unilever CEOs have joined present chief executive Paul Polman in writing to the company's staff to warn the group's UK operations would be "negatively impacted" by the country leaving t...
- Rabobank's early view on Brexit impact on food
- How local model protects Nestle - interview
- Brexit sparks uncertainty for UK food - comment
- Quorn Foods confident in prospects - interview
- Kellogg uses Kashi to finally join party - comment
- Nestle names new CEO
- Brexit – Live reaction from food industry
- Brexit – UK farmers warn of food price spike
- Brexit – US confirms commitment to TTIP with EU
- Healthier food a major opportunity for food makers
- Frozen Bakery Products Market by Type, Distribution Channel, & by Region - Global Trends & Forecast to 2020
- Top Trends in Snacks, Confectionery, and Desserts; Exploring consumer and innovation trends in key categories
- Fast Food in India
- Country Analysis Report: Saudi Arabia, In-depth PESTLE Insights
- Singapore Food and Drink Report Q3 2016