Wal-Mart, Kroger in mix for Hostess assets

by Eric Schroeder
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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. 

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READER COMMENTS (1)

By Mel Ghearing 12/17/2012 9:44:35 AM
Who ever purchases Hostess would be wise to bring back several of the former managers from every level of the old company. These individuals that I am speaking of had no role in the strategic blunders made by the former and current executive group. The unions were only one part of the down fall of this company. Over the last 6 years the top management, private equity groups, and consultants share in the blame. There was a systematic plan to rid the company of experienced bakery management in lew of people from outside the industry who had no clue on how to manage the business.