On Thursday, Flowers Foods (NYSE:FLO) confirmed that the $360 million "stalking horse" bid it entered for Hostess bread brands Wonder, Nature's Pride, Merita, Home Pride, and Butternut, along with 20 bakeries to bake them in, and approximately 38 supply depots, has in fact become the winning bid in Hostess Brands' bankruptcy proceedings.
Because no higher bids were placed, the bankruptcy court called off the auction that was to have taken place February 28. The court now plans to review Flowers' bid at a hearing scheduled to take place March 19. After that, the company expects to finalize its purchase over the next several months.
The only brand for which Flowers placed a stalking horse bid but did not win was the Beefsteak bread brand, and Flowers confirmed that it has elected not to increase its bid. The name of the bidder who will now likely take control of that brand was not disclosed.
Flowers shares closed at $28.18 in Thursday trading, down 0.5%, ahead of the news.