Flowers Foods set to buy Wonder bread: Source
Published on Feb 28, 2013 6:36 AM
(REUTERS) - Flowers Foods Inc is set to buy Hostess Brands Inc's bread brands including Wonder bread for US$360 million (S$445.2 million), a source familiar with the matter said on Wednesday, giving the No. 2 United States baking company a bigger slice of the fast-consolidating bread business.
Pending approval from a US bankruptcy court judge, Wonder Bread, along with Butternut, Home Pride, Merita and Nature's Pride, will go to Flowers after no other bidder stepped up to make a competing offer, a source familiar with the matter said on Wednesday.
Shares of Flowers, which makes Nature's Own bread and Tastykake snacks, were up 5.5 per cent in early afternoon trade, as the deal is expected to boost the company's margins and earnings.
Hostess, which is liquidating its business after 82 years, was set to run an auction on Thursday for the brands, but there will be no auction since there were no other bids, the source said.
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