The No.2 baking company in the US just got bigger as Flower Foods Inc is in the midst of acquiring Wonder Bread. Aside from the iconic sliced bread, other brands included in the acquisition are Butternut, Home Pride, Merita and Nature's Pride.
The price for the Hostess Brands Inc products total US$360 million, making Flower Foods much more competitive in the bread industry market. The brand names would complement Flower products such as Nature's Own bread and Tastykake. Share value of Flowers rose by two percent in market action as the acquisition is expected to increase revenues and profits for the bread company.
The only kink in this acquisition is the judge's order that no other bidder would come in to make a competing offer. It must be remembered that the iconic Hostess brand sought Chapter 11 bankruptcy protection last year. There would be other auctions involving Twinkies and Dolly Madison lines of the bankrupt company.
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