Flowers Foods agrees to acquire $360M of Hostess assets Flowers Foods announced it has signed two asset purchase agreements with Hostess Brands as the "stalking horse bidder" for certain Hostess assets. One of the agreements provides for the purchase by Flowers of the Wonder, Nature's Pride, Merita, Home Pride and Butternut bread brands; 20 bakeries; and approximately 38 depots for a purchase price of $360M. The other agreement provides for the purchase by Flowers of the Beefsteak brand for $30M. Based on the current bid price, Flowers Foods would expect the transactions to be accretive to earnings in 2013. Flowers Foods plans to finance the transactions through a mix of available cash on hand and debt.
Flowers Foods raises repurchase authorization by 7.1M shares Flowers Foods says its board increased the company's share repurchase authorization by 7.1M shares. At the close of the company's Q3, 7.9M shares remained under the existing authorization. With the board's action today, the current authorization increases to 15M shares.