logo
Share SHARE
FONT-SIZE Plus   Neg

WSJ: Flowers Foods, Grupo Bimbo In Talks To Buy Bread Business Of Hostess Brands

Flowers Foods Inc. (FLO) and Grupo Bimbo SAB are in talks to acquire bread business of Hostess Brands Inc., the Wall street Journal reported citing the people familiar with the matter.

Hostess could disclose Flowers, Grupo Bimbo or others as opening bidders in a looming bankruptcy-court auction for the assets as soon as next week, the journal reported.

Hostess, whose bread brands include Wonder Bread, Nature's Pride, is still determining how to split up assets and package them for buyers. Hostess's bread brands could fetch more than $350 million. The bids are still being negotiated, so their final values and structures aren't yet determined, the journal quoted the person as saying.

Hostess's cake business, including the iconic Twinkies brand, is expected to be sold later this year, and negotiations with possible buyers remain in early stages, the journal said.

Hostess in November announced that it was shutting down its business and selling off its 30 or so brands and 36 plants in a bankruptcy liquidation.

Wal-Mart Stores Inc. (WMT) and Kroger Co. (KR) are also interested in Hostess's bread brands but aren't expected to be opening bidders for them. Other smaller companies are also in discussions with Hostess, the paper reported citing the person familiar with the talks.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Citigroup Inc. on Wednesday reported a 7 percent increase in profit for the fourth quarter from last year as lower revenues were more than offset by decreases in cost of credit as well as operating expenses. Adjusted earnings for the quarter beat analysts' expectations, while revenues missed their estimates. Goldman Sachs Group Inc. (GS) reported a profit for the fourth quarter that climbed from the previous year, while quarterly net revenues grew 12 percent. Net revenues in Fixed Income, Currency and Commodities Client Execution increased by 78 percent. Both earnings per share and revenues for the fourth-quarter topped analysts' expectations. Logan Green and John Zimmer, the co-founders of transportation network company Lyft, have come out with a vision to solve the traffic woes, including congestion-priced roads and carpooling. In a Medium post called "The End of Traffic," they said that companies like Lyft van join with the federal government to start various initiatives aimed encouraging more people to carpool.
comments powered by Disqus
Follow RTT