Flowers Foods Gets OK to Acquire Hostess Breads and Bakeries

Following the announcement last month that a pair of private equity investors will return Twinkies to store shelves on July 15, Flowers Foods (NYSE: FLO  ) said yesterday it has received regulatory approval to purchase the old Hostess Brands portfolio of breads, including Wonder, Nature's Pride, and Home Pride.

Flowers announced its intention to buy the assets in February for $360 million after Hostess had been crippled by events including a strike by the Bakery Workers union and sought bankruptcy protection. Flowers received approval from the bankruptcy court to make the acquisition in March and just needed to get approval under the Hart-Scott-Rodino Act, which deals with antitrust issues.

With that now having been gained, Flowers will get Hostess' bread brands, 20 bakeries, and 36 depots. It expects to complete the transaction in the coming weeks. Flowers Foods is one of the largest producers of packaged bakery foods, operating 44 bakeries and generating sales in 2012 that reached $3.05 billion. 

link


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 10, 2013, at 12:55 AM, cullenawilliams wrote:

    The DOJ made properly one of the smartest decisions it has ever made, finally for a USA company to be able to do something right. Flowers actually did not need the labels and I doubt seriously if you will ever see the Natures Pride label on the market again, they had sued Hostess for trademark infringement and that was properly one of the reasons that they file for bankruptcy to start with again, the 20 plants mostly will be sold I feel except in areas that Flowers is not operating in now, they will modernize those plants before they are opened, you will see some of the of other labels in the markets they selling in before but I feel with reformulated recipes and a lot shorter shelf live on them because Flowers was and still is only leaving their products on store shelves 4 days and Hostess was leaving it 7-10 days. "The Flowers Way" is the best way.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2528510, ~/Articles/ArticleHandler.aspx, 8/29/2014 12:13:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement