(MENAFN) Georgia-based producer and marketer of packaged bakery foods Flowers Foods Inc is set to acquire Wonder and other well-known bread brands from Hostess Brands Inc for USD390 million, Reuters reported.
The purchase is subject to a court-supervised auction, and is subject to higher bids. Court approval of the winning bid is required.
Flowers Foods will pay USD360 million for the Wonder, Butternut, Home Pride, Merita and Nature's Pride brands, as well as 20 bakeries and 38 depots, the company said.
It will also pay USD30 million for the Beefsteak brand, the company added.
Flowers already owns brands such as Cobblestone Mill, Nature's Own and Tastykake. It said it expects the purchases to add to earnings in 2013, and that it would finance them with cash on hand plus debt.
Hostess, which also made Twinkies and Drake's cakes, shut down its baking business late last year and abandoned efforts to reorganize under Chapter 11 after a crippling strike by its baker's union.
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