Dive Summary:
- Flowers Foods was announced as the first 'stalking horse' bidder for several Hostess Brands late Friday night.
- Two agreements were signed, one for Wonder, Nature's Pride, Merita, Home Pride and Butternut breads, worth $360 million, and the other for the Beefsteak brand, worth $30 million.
- As the 'stalking horse' bid, these two agreements serve more as a reserve price for the brands, a method of establishing a bidding minimum.
From the article:
Georgia-based Flowers Foods has emerged as the first ‘stalking horse’ bidder for assets from bankrupt baker Hostess Brands.
In a statement released late Friday, the firm said it had signed two asset purchase agreements with Hostess. One provides for the purchase 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. ...
