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Bimbo wins Beefsteak bread in Hostess Brands auction
February 28, 2013 / 9:46 PM / 5 years ago

Bimbo wins Beefsteak bread in Hostess Brands auction

Feb 28 (Reuters) - 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.

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