Following the announcement earlier this year of its intention to buy several bakeries, depots, and brand names as part of Hostess' bankruptcy proceedings, Flowers Foods (NYSE: FLO ) has completed the $355 million deal, the company announced yesterday.
In addition to 20 bakeries, Flowers Foods' acquisition also includes rights for iconic bread brand names including Wonder, Home Pride, Butternut, Merita, and Nature's Pride. The $355 million deal also calls for Flowers Foods to assume ownership of 36 former Hostess Brands depots.
Flowers Foods president and CEO Allen Shiver commented on the deal in a statement, saying, "These assets fit very well with our strategy to grow our fresh baked foods through market expansion and acquisitions. Consumers across much of the country can expect to see these well-known and loved bread brands returning to store shelves over time."
Flowers Foods had initially offered $360 million for the Hostess assets, however, the two sides agreed to an adjustment related to the Butternut trademark, according to the company, and settled on $355 million.