Flowers Foods, the Georgia-based company that owns baked good brands such as Nature's Own and Tastykake, may be a likely bidder for Hostess assets, according to the Wall Street Journal.
Flowers hasn't yet publicly stated intent to buy any part of Hostess. However, the company announced last week that it had renegotiated lending terms, granting it access to a large pool of extra cash.
Some analysts have interpreted this move as a prelude to a Flowers bid for Hostess brands and other assets.
Flowers Foods did not immediately respond to inquiries by The Huffington Post, but the company released a statement about its new lending terms Nov. 19.
"This amendment to our credit facility positions us to take advantage of an assortment of opportunities as we work to achieve our expansion goals," Flowers Foods CFO R. Steve Kinsey said in the statement.
A spokesman for Hostess would not comment on specific bidders, but told The Huffington Post that the company has received more than two dozen inquiries and that a "robust bidding process" is expected. Hostess is expected to sell off
assets piece by piece, and announcements will emerge as the deals go through.
Hostess is looking for buyers for its 30 brands, 36 plants and other assets, the Wall Street Journal reports. The company won interim approval to proceed with its liquidation plan Nov. 21.
Mexican-owned megabakery Grupo Bimbo, a prime competitor of Flowers in the United States, might also vie for Hostess' iconic brands.
According to Forbes, Grupo Bimbo walked away from a 2007 deal that would have allowed them to purchase Hostess for $580 million. Although seen as a low-ball offer at the time, Hostess is now valued at about $135 million.
Flowers Foods acquired Tastykake in April 2011.
Related
Before You Go
