Posted: Jan 11, 2013 5:56 PM
Updated: Jan 11, 2013 5:57 PM
NEW YORK (AP) Hostess said Friday it has a deal to selling most of its bread business, including the Wonder and Nature's Pride, to Flowers Foods Inc. for $390 million.
The deal also includes 20 bakeries and 38 depots.
Hostess, based in Irving, Texas, announced in November that it was shutting down its business and selling its breads and snack cakes. The sales of the Twinkies, Ding Dongs and other brands of snack cakes are expected to be made separately in coming weeks.
The deal with Flower Foods includes $360 million for the Wonder, Nature's Pride, Butternut, Home Pride and Merita brands, along with the bakeries and depots. The sale of Beefsteak bread is being made in a separate deal for $30 million.
Flower Foods was selected as the "stalking horse" bidder for the bread brands as part of the bankruptcy process. That means higher competing bids can still be made and the final deal must be approved in bankruptcy court.
Flowers Foods is based in Thomasville, Ga., and owns brands such as Mrs. Freshley's and Tastykake. Its bread includes Nature's Own and Cobblestone Mill.
Hostess' demise came after years of management turmoil and turnover.
Hostess CEO Gregory Rayburn, who was hired as a turnaround expert last year, said in a statement that the company is still negotiating with parties interested in buying its snack cake business and remaining bread bands.