Flowers Foods Inc is set to buy Wonder Bread and some other brands owned by Hostess Brands Inc HTBRS.UL for $360 million, a source familiar with the matter said on Wednesday, giving the No. 2 U.S. baking company a bigger slice of the fast-consolidating bread business.
Pending approval from a U.S. bankruptcy court judge, Wonder Bread, along with Butternut, Home Pride, Merita and Nature's Pride, will go to Flowers after no other bidder stepped up to make a competing offer, the source said.
Shares of Flowers, which makes Nature's Own bread and Tastykake snacks, were up 2 percent in late afternoon trade, as the deal is expected to boost the company's margins and earnings.
Wonder Bread, known for its soft, spongy texture and polka-dot wrapper, is an iconic American brand that has been around for decades.
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