Hostess Brands Inc. said the offer made by Flowers Foods, Inc. (NYSE:FLO) to buy a number of its brands is currently being reviewed by the Department of Justice (DOJ). Hostess made the deal after it declared bankruptcy late last year.
Speaking on Bloomberg Television’s “In the Loop” today, Hostess CEO Greg Rayburn said the company is working with the agency to handle any barriers that may exist to make sure the deal is completed. Flowers Foods, Inc. (NYSE:FLO) reportedly made the only offer which met Hostess’ needs for qualification.
The deal includes five of the company’s major brands: Wonder, Butternut, Nature’s Pride, Merita and Home Pride. Also included in the deal are 20 bakers and a number of other assets. The offer was worth $360 million and averted the auction that had been scheduled for Feb. 28.
The next step in the process is a bankruptcy hearing, which is set for next week. It will be reviewed and pushed into the final stages. Flowers Foods, Inc. (NYSE:FLO) already owns some brands that are fairly well-known. Its two most popular brands are Tastykake and Nature’s Own.
Hostess Brands Inc. has also made final deals for its most-desired brand: the Twinkie. The only offer made for the brand was from the joint venture of two private equity firms: Apollo Global Management LLC (NYSE:APO) and C. Dean Metropoulos & Company.
That deal was worth $410 million, and it was the base of an auction process which enabled other entities to make a bid for the brand. Like in the deal with Flowers Foods, Hostess also avoided an auction for its Twinkie brand name.