US baker Flowers Foods has reached an agreement with Hostess Brands to acquire its Wonder, Nature’s Pride, Merita, Home Pride and Butternut bread brands for around US$360m.

Flowers has emerged as the “stalking horse” bidder that, if the deal goes through, will also take on 20 of Hostess’ bakeries and approximately 38 depots.

In a separate agreement, Flowers is also set to acquire the Beefstrak brand for $30m.

Hostess went into liquidation at the end of last year, blaming a national strike for “crippling” the already struggling company. The agreement is subject to court approval and, should a higher bidder emerge, Flowers would have to revise its offer or walk away from the deal. 

Flowers said the deal at its current price is expected to be accretive to 2013 earnings. The company added that the move was in line with its target of reaching more of the US population by expanding its relationship with new retail and foodservice customers.

Hostess added that its reamining bread and cake brands were still on the block. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.