Hostess Expands Breakfast Portfolio with Acquisition

American packaged food firm Hostess Brands Inc. said a planned acquisition of some of ARYZTA LLC’s U.S. breakfast food portfolio is nearing completion, the Kansas City, MO company announced in a Feb. 1 press release.

The purchase will include ARYZTA’s Chicago Cloverhill bakery site, the Big Texas and Cloverhill brands, and supply partnerships with several major Hostess retailers. ARYZTA worked with Hostess as a co-manufacturer until June 2017.

“This is an excellent enabling acquisition for the Hostess breakfast strategy and fills a key strategic gap in our product portfolio,” Dean Metropoulos, executive chairman of Hostess, said in a statement. “The Big Texas and Cloverhill brands and private label partnerships will add significant strength to our growing breakfast business.”

Click here for information about the upcoming International Powder & Bulk Solids Conference/Exhibition

Hostess’ range of Sweet Baked Goods (SBG) will grow through the transaction, adding on new offerings of HoneyBuns, cinnamon rolls, and Danish pastries. The company will also take ownership of what it calls “the largest individually-wrapped Danish pastry facility in North America.” Its new brands will enable Hostess to better penetrate club, vending, cash and carry, and independent convenience store sales channels, the company said.

“This strategic acquisition allows us to bring important product manufacturing in-house as we expand and drive growth in our breakfast product portfolio,” said Bill Toler, Hostess’ president and chief executive officer, in the firm’s release. “In addition, this purchase will enable Hostess to forgo in-house capital investments and create significant value over the next few years.”

Financial terms of the transaction were not disclosed.

For more news headlines, articles, and equipment reviews, visit our Equipment Zones