As many have hoped, Hostess has found a new home for Wonder Bread. On Friday, the bankrupt company announced that it had chosen bids from Flower Foods, Inc. to purchase six of its brands for $390 million. Aside from Tastykake, the Georgia-based company is known for making its own breads such as Nature's Own and Cobblestone Mill.
In the next few weeks, Hostess is expected to unveil buyers for its desert cakes. The company says it has entertained offers from various suitors, such as national supermarket chains. While Flower Foods was chosen as the winning bidder for the Hostess breads, higher bids can still be made and a final deal must be given the seal of approval in bankruptcy court.
Flower Foods made separate bids. The first $360 million bid was for Wonder Bread, Nature's Pride, Home Pride, Butternut and Merita, 20 bakeries and 38 depots. The remaining $30 million was for Beefsteak.
[via The Associated Press]