Hostess Brands Inc. announced March 20 that it has received court of approval of various asset sales that comprise the majority of the debtor's snack cake and bread businesses and total approximately $800 million in proceeds (In re Hostess Brands Inc., Bankr. S.D.N.Y., No. 12-22052 (RDD), orders entered 3/20/13).
Hostess had previously announced the selection of Apollo Global Management LLC and Metropoulos & Co., Flowers Foods Inc., McKee Foods Corporation, and United States Bakery Inc. as the stalking horse bidders for various assets in January (25 BBLR 179, 2/7/13).
The bankruptcy court approved the sale of the majority of Hostess's bread business, including the Wonder brand, to affiliates of Flowers Foods for $360 million.
“The Hostess assets would fit well with our long-term growth strategy,” Flowers Foods CEO George E. Deese said in a March 20 press release. “However, this process is not over. Now, the transaction must continue through the regulatory process. We anticipate completing the transaction in the second half of the year.”
Finally, the court approved the sale of Hostess's Beefsteak bread brand to affiliates of Grupo Bimbo SAB de CV for $31.9 million, despite Flowers Foods initially being chosen as the stalking horse bidder for $30 million. A hearing had been scheduled for April 9 at which the court will consider approval of the sale of Hostess's Drake snack cake brand to McKee Foods for $27.5 million, as well as the sale of the company's Sweetheart, Eddy's, Standish Farms, and Grandma Emilie's bread brands to United States Bakery for $30.9 million.
Hostess filed for Chapter 11 protection on Jan. 11, 2012 (24 BBLR 82, 1/19/12). On Nov. 12, 2012, the bankruptcy court approved a bid by Hostess to proceed with winding down its business and to alter key terms of labor contracts after mediated negotiations ordered by the court failed to resolve a strike by the Bakery, Confectionery, Tobacco and Grain Millers Union (24 BBLR 1548, 11/29/12).
Full text of the order approving the sale to Flowers Foods is available at:http://www.bloomberglaw.com/public/document/Hostess_Brands_Inc_Docket_No_712bk22052_Bankr_SDNY_Jan_11_2012_Co
Full text of the order approving the sale to Apollo Global and Metropoulos is available at:http://www.bloomberglaw.com/public/document/Hostess_Brands_Inc_Docket_No_712bk22052_Bankr_SDNY_Jan_11_2012_Co/1
Full text of the order approving the sale to Grupo Bimbo SAB de CV is available at:http://www.bloomberglaw.com/public/document/Hostess_Brands_Inc_Docket_No_712bk22052_Bankr_SDNY_Jan_11_2012_Co/2
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