Flowers Foods Completes Hostess Acquisition
Flowers Foods announces the completion of its acquisition of bread assets, including 20 bakeries; the Wonder, Merita, Home Pride, Butternut, and Nature's Pride brands; and 36 depots from Old HB, Inc. (formerly Hostess Brands). The adjusted purchase price was $355 million.
The acquisition of the Hostess bread assets strengthens Flowers Foods' position as the second-largest baker in the United States by adding brands and bakeries that will enhance the company's ability to steadily expand the geographic reach of its fresh breads, buns, rolls, and snack cakes into new markets. Flowers has experience integrating acquisitions, having completed more than 100 since listing publicly in 1968, including 12 in the past decade.
"These assets fit very well with our strategy to grow our fresh baked foods through market expansion and acquisitions," says Allen L. Shiver, president and chief executive officer. "Consumers across much of the country can expect to see these well-known and loved bread brands returning to store shelves over time."
Flowers' direct-store-delivery system reaches from Maine to Florida and extends throughout the South, Southwest, and west to California. Over the last decade, Flowers has more than doubled the reach of its fresh bread brands--from 38 percent of the U.S. population in 2003 to 77 percent of the population today. "We will continue our methodical market expansion, re-introducing the newly acquired brands into markets we currently serve and into new markets as we steadily expand into new regions of the country," Shiver explains.
Earlier this year, the company announced its bid to purchase the assets for $360 million, and the bankruptcy court approved the sale in March. On July 8, Flowers received regulatory approval pursuant to the Hart-Scott-Rodino Act.
The final acquisition price was adjusted to $355 million as a result of a contemplated purchase price adjustment related to the Butternut trademark.
A document addressing frequently asked questions on the acquisition has been posted on the Newsroom page of the Flowers Foods web site—www.flowersfoods.com. Flowers Foods will announce second quarter 2013 earnings on August 13, and management will host a conference call the same day. Management is expected to discuss the company's outlook for second half of 2013 during the call.
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Flowers Foods to Buy Hostess Breads
The acquisition of the Hostess bread assets strengthens Flowers Foods' position as the second-largest baker in the United States by adding brands and bakeries that will enhance the company's ability to steadily expand the geographic reach of its fresh breads, buns, rolls, and snack cakes into new markets. Flowers has experience integrating acquisitions, having completed more than 100 since listing publicly in 1968, including 12 in the past decade.
"These assets fit very well with our strategy to grow our fresh baked foods through market expansion and acquisitions," says Allen L. Shiver, president and chief executive officer. "Consumers across much of the country can expect to see these well-known and loved bread brands returning to store shelves over time."
Flowers' direct-store-delivery system reaches from Maine to Florida and extends throughout the South, Southwest, and west to California. Over the last decade, Flowers has more than doubled the reach of its fresh bread brands--from 38 percent of the U.S. population in 2003 to 77 percent of the population today. "We will continue our methodical market expansion, re-introducing the newly acquired brands into markets we currently serve and into new markets as we steadily expand into new regions of the country," Shiver explains.
Earlier this year, the company announced its bid to purchase the assets for $360 million, and the bankruptcy court approved the sale in March. On July 8, Flowers received regulatory approval pursuant to the Hart-Scott-Rodino Act.
The final acquisition price was adjusted to $355 million as a result of a contemplated purchase price adjustment related to the Butternut trademark.
A document addressing frequently asked questions on the acquisition has been posted on the Newsroom page of the Flowers Foods web site—www.flowersfoods.com. Flowers Foods will announce second quarter 2013 earnings on August 13, and management will host a conference call the same day. Management is expected to discuss the company's outlook for second half of 2013 during the call.
Related Articles:
Twinkies to Return to Store Shelves
Hostess Selects Winning Bidder for Twinkies
Flowers Closer to Buying Hostess Brands
Flowers Foods to Buy Hostess Breads