Hostess Brands Go on the Auction Block
Hostess may be dead, but its popular brands are not. Several other food companies believe they can make money on the Hostess asset base, and the auction process to sell these has begun.
According to The Wall Street Journal:
Flowers Foods Inc. and Grupo Bimbo SAB are in discussions to acquire pieces of Hostess Brands Inc.'s bread business, as the maker of Wonder Bread and Twinkies sells off assets and liquidates, said people familiar with the talks.
Hostess could disclose Flowers, Grupo Bimbo or others as opening bidders in a looming bankruptcy-court auction for the assets as soon as this week, the people said. Hostess, whose bread brands include Wonder Bread, Nature's Pride, Home Pride, Merita and Butternut, is still determining how to split up assets and package them for buyers, one of the people said.
Hostess bread brands include Wonder Bread, and could fetch more than $350 million, according to one person.
Hostess's bread brands could fetch more than $350 million, the person said. The bids are still being negotiated, so their final values and structures aren't yet determined, the person said.
Filed under: 24/7 Wall St. Wire, Bankruptcy, Food