Wal-Mart, Kroger in mix for Hostess assets
Dec. 13, 2012
by Eric Schroeder
IRVING, TEXAS — Wal-Mart Stores, Inc. and Kroger Co. are among the bidders for certain assets being sold by Hostess Brands, Inc., according to an article appearing today on Bloomberg.com.
Citing a person familiar with the matter, Bloomberg.com said there are about two dozen bidders, with some looking to buy all the assets and others looking to buy just the cakes or bread businesses, or individual Hostess plants.
Earlier this month, Hostess said it was in active dialogue with 110 potential bidders for portions of the company, 70 of which signed non-disclosure agreements allowing them to conduct due diligence.
The company had its wind-down plan approved by the U.S. Bankruptcy Court in the Southern District of New York on Nov. 30, and set a deadline date of Dec. 10 for all interested parties to submit letters of interest. No dates have been set for when Hostess will make a decision on what bids — if any — it will accept.
In addition to Wal-Mart and Kroger, other companies rumored to be in the mix for Hostess assets include Flowers Foods, Inc.; Grupo Bimbo S.A.B. de C.V.; McKee Foods Corp.; ConAgra Foods, Inc.; Sun Capital Partners, Inc.; C. Dean Metropoulos & Co.; and Hurst Capital LLLP.