Hostess Names Flowers as Lead Bidder for Bread Business

The saga continues.

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Hostess Brands Inc., the bankrupt maker of Wonder bread and Twinkies, said Flowers Foods Inc. (FLO) is the lead bidder for most of the assets of its bread-baking operations.

“We are pleased with the Flowers offers and look forward to a robust auction process that will allow these iconic brands to continue and to maximize value for all of the company’s stakeholders,” Hostess Chief Executive Officer Gregory F. Rayburn said yesterday in a statement.

The proposed accord with Flowers Foods includes the purchase of the Wonder, Butternut, Home Pride, Merita and Nature’s Pride brands, 20 bakeries, 38 depots and other assets for $355 million, which may be increased to $360 million if certain license rights are included in the sale. The remaining bread brands, as well as its snack cake business, will be sold separately, according to the statement.

Flowers Foods, based in Thomasville, Georgia, also agreed to