Flowers Foods Inc. (FLO: Quote) 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: Quote) and Kroger Co. (KR: Quote) 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.
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by RTT Staff Writer
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