Wonder Bread To Be Baked Again

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A $360 million bid by baker Flowers Foods  for Wonder and most other bread brands of bankrupt Hostess Brands has been accepted and will be announced later Wednesday, according to a source familiar with the negotiations.

Any deal would be subject to approval by the bankruptcy court and regulators.

It’s not clear how this would affect the Memphis factory.

Wonder Bread, Twinkies and other Hostess products have not been produced since November, when the company filed with the bankruptcy court to liquidate its business following a crippling strike by the Bakery Workers union.

But while Hostess is out of business, and most of its 18,500 employees have lost their jobs, the company has been auctioning off its various brands as part of the liquidation process.

The exact timing of the return of Wonder Bread to shelves has yet to be determined. A Flowers spokesperson was not immediately available for comment.

Flowers was designated as the leading bidder for Hostess’ bread business on Jan. 11. Besides Wonder, the bid included Nature’s Pride, Merita, Home Pride and Butternut bread brands, as well as 20 bakeries.

When it made the bid, Flowers said the purchase is in keeping with its plans to grow its bread business and reach more customers.

On Jan. 30, a joint $410 million bid by Apollo Global Management (APO) and Metropoulos & Co. was similarly tapped as the leading bidder for the iconic Twinkies brand, the Dolly Madison line of snacks, as well as five bakeries and some of the equipment.

Also in January, McKee Foods Corp. was tapped as the leading bidder with its $27.5 million offer for Hostess’ Drake’s brand and some of its equipment. Drake’s products include Ring Dings, Yodels, Devil Dogs and Yankee Doodles, as well as its coffee cake.

A final decision on those two bids are still pending, as is a separate $30 million bid that Flowers has made for Beefsteak bread, the one bread brand not included in its winning bid.

See more at: http://money.cnn.com/2013/02/27/news/companies/wonder-bread/#sthash.Fb5xgzaf.dpuf