Feb 28 Mexico's Grupo Bimbo won the Beefsteak bread brand in an auction on Thursday from bankrupt company Hostess Brands Inc, after outbidding rival Flowers Foods Inc with an offer for $31.9 million, Hostess said.
The bid, by the world's largest bread maker, is still subject to approval by a U.S. bankruptcy court.
Hostess also confirmed on Thursday that Flowers, maker of Tastykake snacks, is set to buy other Hostess bread brands, including Wonder, Butternut and Home Pride for $360 million.
Hostess received permission late last year from a U.S. bankruptcy court to wind down its business and liquidate assets after 82 years, following a bakery union strike that paralyzed its operations.
Bimbo's U.S. brands include Entenmann's cakes, Arnold bread and Thomas' English Muffins. The Mexican company was also seen as a candidate to bid for Hostess's snack cake brands including Twinkies, sources told Reuters previously. That asset received an initial bid of $410 million from Apollo Global Management LLC and C. Dean Metropoulos & Co and will go to auction next month.