Taken together, Hostess has said its six bread brands generated just under $1 billion in sales last year, with Wonder bread accounting for about half of that. Flower Foods, which generates about $3 billion in annual sales, said it expects the deals to add to its earning this year. The company plans to finance the deal through a mix of cash and debt.
In a bankruptcy court filing Monday, Hostess' second largest union objected to the sale of the breads, noting that Flowers Foods "has not committed to preserve a single job."
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union said that while the bid may be optimal for the company's lenders, it provides "zero assurances" that the rights of workers would be protected.