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.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool recommends Flowers Foods. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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