One of the agreements provides for the purchase by Flowers of the Wonder, Nature’s Pride, Merita, Home Pride and Butternut bread brands, 20 bakeries and approximately 38 depots for a purchase price of $360m. The other agreement provides for the purchase by Flowers of the Beefsteak brand for $30m.
The transactions are subject to a court-approved bankruptcy process being initiated by Hostess. If Flowers’ ‘stalking horse’ bids are approved by the bankruptcy court, the bids would then be subject to a competitive auction process to be held several weeks from now.
The company would expect to close the transactions shortly following court approval if it is selected as the winning bidder. The transactions also are subject to regulatory clearance.
Based on the current bid price, Flowers Foods would expect the transactions to be accretive to earnings in 2013. Flowers Foods plans to finance the transactions through a mix of available cash on hand and debt.
Source: Flowers Foods
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