Hostess Brands Inc. announced that the company has selected Flowers Foods, Inc. as the stalking horse bidder for the majority of the assets related to the company's bread business, including the Butternut(R), Home Pride(R), Merita(R), Nature's Pride(R) and Wonder(R) brands. The agreement includes, in addition to the brands, 20 bakeries, 38 depots and other assets. The purchase price consists of $355 million in cash (increased to $360 million if certain license rights are included in the sale).

The company's remaining bread brands, as well as its snack cake business, will be sold separately. Hostess has also selected Flowers as the stalking horse bidder for the company's Beefsteak(R) bread brand. The purchase price consists of $30 million in cash for the brand.

The transaction does not include facilities or additional assets. Hostess has requested that the U.S. Bankruptcy Court for the Southern District of New York authorize the company to proceed with an auction with the two Flowers proposals as the stalking horse bids, provided the company receives additional qualified bids. If approved, the stalking horse bids will serve as the opening bids in the auction.

The final sales will be made to the highest and best bidders at the auction, subject to Court approval.