Flowers Foods to buy some Hostess brands for $390 million

[Omaha Steve]

Source: NBC

Flowers Foods Inc on Friday said it has agreed to buy Wonder and other well-known bread brands from Hostess Brands Inc for $390 million, as part of the latter company's bankruptcy reorganization.

The Thomasville, Ga.-based company said it agreed to pay $360 million for the Wonder, Butternut, Home Pride, Merita and Nature's Pride brands, as well as 20 bakeries and 38 depots.

It also entered a second contract where it agreed to pay $30 million for the Beefsteak brand.

Gregory Rayburn, Hostess' chief executive, said the Kansas City, Mo.-based company remains in talks to sell its snack cake business, including Twinkies and Drake's cakes, as well as its remaining bread brands.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.

FULL story at link.


Read more: http://www.nbcnews.com/business/flowers-foods-buy-some-hostess-brands-390-million-1B7946786

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Joe Raedle / Getty Images

Flowers Foods has agreed to purchase the Wonder Bread brand from Hostess.

[Mojorabbit]

1. I wonder if they had buyers lined up long before

they raided the pension plans and got ready to close it down.

[groundloop]

3. Probably knew exactly what they were going to do.

Fucking bastards, they screw employees and make themselves filthy rich by doing nothing useful. "Income" earned like that ought to be taxed at least at 50% if not more.

[RKP5637]

2. Great news!!!

[groundloop]

4. I dunno' - I suspect the employees will end up losing a lot

When my employer did something similar everybody who had been investing in company stock lost everything (in hindsight it's interesting how much the company pushed our employee stock purchase plan in the last year... hmmmm....). And what about any pensions, if there was a pension fund I'm betting that's gone now.

But yes, at least some people will get to keep their jobs.

[RKP5637]

6. The management of Wonder Bread was despicable. The CEO should be serving time in

my book. Someone posted his trail awhile back on DU. The guy's specialty was bankrupting companies and riding off into the sunset with lots of $$$$$ along with his cronies. They drove Wonder Bread into the ground and then blamed the union.

[Beacool]

8. It's amazing what these people can get away with, isn't it?

[RKP5637]

11. I was raised in a corp. family, my dad was high up, and was an ultra-strong FDR democrat.

Employees were well taken care of, benefits were great and retirement was great. They contributed an enormous amount of money to the educational system, beyond the requirements. It was a win/win all the way.

I worked for large corps. in my days, and was extremely well taken care of in my early years. The corp. put a lot of money into my education, relocations, etc., had company schools, etc., etc. Employees were said to be their most valued asset and they meant it ... and we all liked the CEOs and founders.

Then in the 80's I noticed this starting to fall apart. Jobs being outsourced, benefits being cut, employees now said to be the greatest liability of the corp., shoddy products, lies, cheats, CEOs with absolutely outrageous pay, and a government that has been complacent and complicit in much of this.

In short, it's been a complete reversal to this mess we have today. That we are supposed to think is great, and it's a bunch of BS, case in point, for one example, Wonder Bread.

[Beacool]

12. Yes, corporations were not always evil.

The greed today know no bounds and caused the world economic collapse. Years ago people were loyal to the company and the company was loyal to them. Today, downsizing is the norm. It is rare the person who starts their career in one company and retires from the same company.

[cstanleytech]

14. It has never been an issue of corporation greed since

corporations are not people thus they cannot suffer from greed nor can they be good or evil. No what this really is human greed and that has been with us for a long, long time.

[Divine Discontent]

16. wow! doesn't surprise me at all. they're all sick in my book!

I believe in an afterlife, and it's a good thing, because apparently, these con-artists get away with everything here! Seriously, how can these people go from major company to major company destroying them and making tens of millions in the process apiece, without punishment? It sure seems like a criminal enterprise.

[RKP5637]

22. It's like an old boys club. Many on the board of directors often serve in the

same capacity on many boards. Once you join the club at that level you pretty much float around in the club. Many of them are cut from the same piece of cloth IMO. I'm not a religious person, but it would be nice if there were some afterlife.

[Divine Discontent]

23. bless you for your information sharing. I agree with you, they

keep their own in the fold once they're accepted. They think those who aren't in their class are just slaves for their pursuits of wealth.

And, well, with all I've seen, and being on the top of a 14000 foot mountain alone with the lightning off in the distance, and a pond glistening, I have to believe there's a higher power. I don't wanna believe these hateful people who lust for power & money get away with this... lol. that's not the only reason I believe. but, when I get to meet all the types of wonderful people around the world, and see that there's more of us (compassionate open-minded people) than them (loud controlling bigots), I really feel we are a beautiful creation. Hope I'm right... lol

[RKP5637]

24. ...

[Sherman A1]

18. They already have lost pretty much everything

The employees have been screwed under Wonder/Hostess Management for close to the last decade. What happened in November was undoubtedly planned by that same management to finish it off and cash out for the bosses. The only good news in this, is that there will be jobs returning. They will not be the jobs in wages and benefits that they once were, but there will be some jobs.

[NRaleighLiberal]

5. save the Drakes Funny Bones! Best junky snack food evah!

Peanut butter and chocolate!

[Beacool]

7. My bread is back!!!

I'm hoarding two loaves in the freezer. I hope that they start production before I run out.

[Sekhmets Daughter]

10. It was up to $3.29 a loaf here, before the company closed.

I was sad to see it go. I wonder if it will be the same bread under new owners.

[Beacool]

13. I like Wonder Smart.

The slices were normal size, not skimpy like other diet breads. Two slices had 100 calories and 5 gr. of fiber. It was also cheap. One of the loaves I have in the freezer I purchased on sale at ShopRite for $2.19. I hope tat they use the same recipe. By contrast, Weight Watchers bread loaves are small, the slices are thinner and it costs over $4.00.

[Sekhmets Daughter]

19. All the stores dropped their prices when the news came out....

I didn't stock up... I have always preferred to rip off the bandaid.

[Beacool]

20. ShopRite would always have them on sale at least once a month.

That's when I would stock up. I'm about to have two slices with peanut butter and jam before I go out to run errands.

Yummy.........

[Sekhmets Daughter]

21. Enjoy!

[Beacool]

25. Thanks!!

[ButterflyBlood]

9. Good! I love Wonder Bread

By far my favorite brand.

[DainBramaged]

15. HOLY SHIZNETS

[Sherman A1]

17. This is good news, particularly the

purchase of the bakeries as that means jobs and adding this amount of product lines will mean an addition of routes and drivers for those routes. It will certainly not be what it was under Wonder/Hostess and these will very likely not be union jobs, but it will be more than we have now.