Jan 11 Flowers Foods Inc on Friday said
it has agreed to buy Wonder and other well-known bread brands
from Hostess Brands Inc for $390 million, as part of the latter
company's bankruptcy reorganization.
The Thomasville, Georgia-based company said it entered one
contract to pay $360 million for the Wonder, Butternut, Home
Pride, Merita and Nature's Pride brands, as well as 20 bakeries
and 38 depots. It also agreed to pay $30 million for the
Flowers already owns brands such as Cobblestone Mill,
Nature's Own and Tastykake. It said it expects the purchases to
add to earnings in 2013, and that it would finance them with
cash on hand plus debt.
The purchase is subject to a court-supervised auction, and
is subject to higher bids. Court approval of the winning bid is
Hostess, which also made Twinkies and Drake's cakes, shut
down its baking business late last year and abandoned efforts to
reorganize under Chapter 11 after a crippling strike by its
The case is In re: Hostess Brands Inc et al, U.S. Bankruptcy
Court, Southern District of New York, No. 12-22052.