NEW YORK — Hostess has found a new home for most of its breads, including Wonder, Nature’s Pride and Merita.
The bankrupt company maker of Twinkies, Devil Dogs and other snack cakes said late Friday that it selected bids by rival bakery Flower Foods Inc. to buy the breads for US$390 million. Flower Foods, based in Thomasville, Georgia, is best known for Tastykakes but also makes breads including Nature’s Own and Cobblestone Mill.
Hostess is expected to announce buyers for its famed dessert cakes over the next several weeks. The company has said it has received interest for its brands from a wide variety of parties, including national supermarket chains and the makers of brand name packaged foods.
Flower Foods was selected as the “stalking horse” bidder for the bread brands. That means higher competing bids can still be made and the final deal must be approved in bankruptcy court. The company made two separate bids for the Hostess breads; a US$360 million bid for Wonder, Nature’s Pride, Butternut, Home Pride and Merita, along with 20 bakeries and 38 depots. Another US$30 million bid was made for Beefsteak.