Flowers Foods Says it Will Complete Acquisition of Select Hostess Units by 2H 2013

At an event hosted for financialanalysts today and webcast live over the Internet, executives of Flowers Foods(NYSE: FLO) commented on the company's bid to acquire Hostess bread brands andbakeries. Executives also provided an overview of the company's growthobjectives and operational strategies and discussed year-to-date sales andearnings. The meeting was held at the New York Stock Exchange.Regarding Flowers' pending acquisition of Hostess' Wonder, Nature's Pride,Merita, Home Pride, and Butternut bread brands as well as 20 bakeries and 38depots, George E. Deese, chairman of the board and chief executive officer,said, "The Hostess assets would fit well with our long-term growth strategy.We are pleased with the outcome of the bankruptcy court review in which thecourt approved the sale this week, subject to the finalizing of the salesorder, which we expect to occur shortly. However, this process is not over.Now, the transaction must continue through the regulatory process. Weanticipate completing the transaction in the second half of the year. Becausethe transaction is not finalized and for competitive reasons, we will notshare any specific plans regarding the pending acquisition."This is an amazing time for Flowers Foods. Our long-term commitment toinvesting in bakeries, constantly improving efficiencies, delivering qualityand the best customer service, and building strong brands is paying gooddividends for us. Flowers Foods' year-to-date sales are up 20% to 25% and ourearnings outlook is strong," Deese said. "We are adding new customers andlocations, and we believe we are maximizing the opportunities available to us.Recent acquisitions like Lepage Bakeries in the Northeast and the Sara Leebrand of fresh bread, buns, and rolls in California have helped us extend ourgeographic reach. We have strong brands, great products, and a seasonedteam—all factors that give me confidence in Flowers' ability to meet or exceedour goals."Allen L. Shiver, president of Flowers Foods, discussed from an operations andsales standpoint how the company is well-positioned for accelerated growth."Our strategy is proven. Our brands, such as Nature's Own and Tastykake, arewell established and deliver consistent quality and great taste. Flowers'bakeries are among the most efficient in the country. Our distributionnetworks for DSD ("direct-store-delivery") and our warehouse segments areeffective in delivering the products our customers need. And we believe theFlowers team is simply the best in the industry," said Shiver.Bradley K. Alexander, president of Flowers Bakeries, provided an update of thecompany's recent Lepage Bakeries integration, as well as an overview ofFlowers' roll out of Sara Lee fresh breads, buns, and rolls in Californiafollowing the completion of the acquisition from BBU, Inc.In his comments, R. Steve Kinsey, executive vice president and chief financialofficer, said, "We are very optimistic about our fiscal 2013 outlook. We areseeing strong sales and earnings trends, and we expect to deliver a strongfirst quarter. However, due to the pending Hostess transaction, we are limitedin regard to the information we can provide on the full year."Deese closed the meeting by reiterating his confidence in the Flowers team."While the marketplace dynamics and competitive landscape continue to evolve,I am more confident than ever in Flowers Foods' ability to execute ourstrategies and continue to deliver value to our shareholders, our customers,and our consumers," he said.Flowers Foods broadcast the event live over the Internet. The archivedpresentation can be accessed on the company's Web site www.flowersfoods.com.