US-based Flowers Foods has received regulatory approval to complete the acquisition of certain bread brands and assets of Old HB, formerly known as Hostess Brands.
The deal, which is expected to be completed in the coming weeks, includes acquisition of Wonder, Nature's Pride, Merita, Home Pride, and Butternut bread brands, 20 bakeries, and 36 depots.
In February, Flowers Foods announced that its bid to purchase the assets of Hostess Brands for $360m was declared as the highest bid for such assets. In March, the court overseeing the Old HB bankruptcy case approved the sale.
Hostess Brands filed for bankruptcy in January 2012 for the second time in its history as it was affected by increasing debts, soaring labour costs and the changing tastes of consumers. The company declared to sell assets of $982m and debt of $1.43bn.
In November, it received approval from the US Bankruptcy Court in New York to close its business and sell its assets.
Flowers Foods, headquartered in Thomasville, Georgia, producer and marketer of packaged bakery foods for retail and foodservice customers in the US with annual sales of more than $3bn. It operates 44 bakeries that produce a wide range of bakery products under Nature's Own and Tastykake brands.
