Flowers Foods – FLO – To Acquire Certain Hostess Bread Brands and Bakeries
NYSE: FLO) announced it has signed two asset purchase agreements with Hostess Brands, Inc. as the “stalking horse bidder” for certain Hostess assets. One of the agreements provides for the purchase by Flowers of the Wonder, Nature’s Pride, Merita, Home Pride and Butternut bread brands; 20 bakeries; and approximately 38 depots for a purchase price of $360 million. The other agreement provides for the purchase by Flowers of the Beefsteak brand for $30 million.
The transactions are subject to a court-approved bankruptcy process being initiated by Hostess. If Flowers’ “stalking horse” bids are approved by the bankruptcy court, the bids would then be subject to a competitive auction process to be held several weeks from now. The company would expect to close the transactions shortly following court approval if it is selected as the winning bidder. The transactions also are subject to regulatory clearance.
Flowers Foods has previously stated its interest in acquiring certain Hostess assets should they become available. “This agreement is consistent with Flowers Foods’ long-term growth objectives to reach significantly more of the U.S. population with its fresh breads, buns, and rolls,” said George E. Deese, chairman and chief executive officer of Flowers Foods. “We believe these assets would enhance our ability, over time, to provide more U.S. consumers with quality baked foods at a good value through existing and new retail and foodservice customers.”
Based on the current bid price, Flowers Foods would expect the transactions to be accretive to earnings in 2013. Flowers Foods plans to finance the transactions through a mix of available cash on hand and debt.
About Flowers Foods – FLO
Headquartered in Thomasville, Ga., Flowers Foods, Inc. (FLO) is the second-largest producer and marketer of packaged bakery foods for retail and foodservice customers in the United States with annual sales of more than $3 billion. FLO operates 44 bakeries that produce a wide range of bakery products. These products currently are sold through a direct-store-delivery network with access to more than 70% of the U.S. population in the East, South, and Southwest as well as in certain markets in California. Select Flowers products are sold nationwide through customers’ delivery systems. Among the FLO’s top brands are Nature’s Own and Tastykake.
More Posts by this author
- Stocks End on a Mixed Note
- Gold Prices Settle Higher; Silver Prices Rise Sharply
- Stocks Mixed in Late Trading
- Stocks Hover in Red Territory
- Lennar Corporation – LEN – Earnings better than Estimates
- Joe’s Jeans – JOEZ – Announces Preliminary Net Sales for the Q4 and FY12
- Majesco Entertainment – COOL – Reports Q4 and FY2012 Financial Results
 |
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
|
