by Christopher Freeburn | February 28, 2013 11:41 am
An insider source tells Reuters that Flowers Foods (NYSE:FLO) will acquire a number of brands, including Wonder Bread, from bankrupt Hostess Brands.
The company will also purchase the Nature’s Pride, Merita, Butternut and Home Pride bread brands. Flowers Foods was the only bidder for the baked goods brands. A court-sanctioned auction had been scheduled for Thursday, but that was called off after no rival offers were received.
The final sale must still receive the bankruptcy court’s approval.
Mexico’s Group Bimbo has submitted a $31.9 million bid for Beefsteak bread, meaning that there will be an auction for that brand. Flowers had bid $30 million for Beefsteak.
Hostess began liquidating assets after it failed to negotiate a deal with its bakers union, which launched a crippling strike at the bankrupt company in November, forcing it to shut down.
In January, it was announced that Flowers would be one of the “stalking horse” bidders in the auctions for Hostess’ brands.
Shares of Flowers Foods rose fractionally in Thursday morning trading.
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