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Georgia mergers and acquisitions may save major brands

Fans of Wonder Bread and other Hostess products have likely been anxious to see what will happen once the company started liquidating its assets following its bankruptcy filing. Flowers Foods in Georgia is currently the highest bidder for most of the bread bakeries and brands. If the company is successful in making the acquisition, it is likely that consumers will be buying their favorite breads again soon. This is just one example of how mergers and acquisitions may keep a beloved product from disappearing permanently from store shelves.

Flowers Foods signed two different purchase agreements with Hostess. The first is to purchase the Wonder and four other bread brands, along with 38 depots and 20 bakeries for $360 million. The second purchase agreement is for the Beefsteak brand, which Flowers bid on for $30 million.

Both Hostess and Flowers Foods have a positive outlook about the agreements, but the transaction needs to be approved by the bankruptcy court before Flowers Foods can move forward with the acquisition. If the court approves the transaction, the bids made by Flowers Foods will be part of a competitive auction process that is taking place in several weeks. If the company's bids are selected, the purchase of the bread bakeries and brands could take place shortly afterwards.

Mergers and acquisitions are complex, and unforeseen circumstances can slow down the process or prevent it from going through. Georgia business owners who are looking at either process may find it beneficial to speak with legal counsel who can guide them through all the potential problems. With the right kind of assistance, the process may go much smoother and result in a prosperous future for the company that is merging or being acquired.

Source: Atlanta Business Chronicle, "Hostess says Georgia-based Flowers is lead bidder," Carla Caldwell, Jan. 14, 2013

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