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Georgia mergers and acquisitions: Flowers Baking Co. buys Hostess

Many people in Georgia knows that Hostess filed for bankruptcy last year. As part of the bankruptcy, Flowers Baking Co. was given the go-ahead to acquire all of Hostess except for the line of snack-cakes that include popular items such as Twinkies and Ho-Hos. As often happens in mergers and acquisitions, the purchase is being done piece by piece.

In July, Flowers purchased one of Hostess' west coast plants for $3.89 million. There were somewhere in the neighborhood of 220 people working at that particular plant. There are also approximately 80 more people working at locations other than the plant in the same region as the one that was recently purchased.

The Georgia company has said that it is able to handle its current output with its existing facilities. As the company begins to reintroduce Hostess bread products into the market, it may need to reopen locations purchased from Hostess. The recently purchased location is in northern California, has plenty of truck parking and is close to one of California's many freeways.

When companies consider mergers and acquisitions, location of any property acquired may be one of the deciding factors. For Flowers Baking Co., which owns brands such as Tastykakes and Nature's Own, this new location could serve as a distribution point for their products on the West Coast. It takes careful consideration, planning and work to make a merger or acquisition happen smoothly. There are business and legal decisions and documents that will need to be handled in order to finalize the deal.

Source: bizjournals.com, Arden Way Hostess plant sells for $3.9M, Ben van der Meer, Aug. 29, 2013

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