Companies to bid for Wonder BreadComments Off
New York, N.Y. – Latest reports say two companies are emerging as possible bidders for Wonder Bread and other Hostess Brands Inc. products.
A story in TheRecord.com reports Flowers Foods Inc. and Grupo Bimbo SAB are said to be in discussions to acquire Hostess’ bread brands, which also includes Nature’s Pride.
The asking price is reportedly pegged at $350 million.
Grupo Bimbo’s brands include Arnold breads, Thomas’ English muffins and Entenmann’s cakes. Flowers Foods Inc.’s brands include Nature’s Own breads and Tastykake snacks.
Hostess sells Twinkies, Ding Dongs and Ho Hos, along with Dolly Madison cakes, which includes Coffee Cakes and Zingers. Hostess also sells Devil Dogs, Funny Bones, and Yodels under the Drake’s brand.
Hostess, which is based in Irving, Texas, announced in November that it was shutting down its business and selling its bread, snacks and cakes brands along with its 33 bakeries and other operations, says TheRecord.com.
The company’s demise came after years of management turmoil and turnover. Workers said the company failed to invest in updating its snack cakes and breads. Hostess filed for its second bankruptcy protection in less than a decade last year, citing steep costs associated with its unionized workforce.
The company was able to reach a new contract agreement with its largest union, the Teamsters, but the bakers union rejected the terms and went on strike Nov. 9, says TheRecord.com. A week later, Hostess announced its plans to liquidate, saying the strike crippled its ability to maintain normal production. In 2011, the company’s revenue was $2.5 billion.