Hostess Brands Acquires Cloverhill, Big Texas Brands, Broadening Vending Distribution

Posted On: 2/1/2018

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KANSAS CITY, MO -- Hostess Brands Inc.  said it is completing the acquisition of certain U.S. breakfast assets of Aryzta LLC, including one its Chicago Cloverhill bakery facilities and the Big Texas and Cloverhill brands. Financial terms of the transaction were not disclosed.

Kansas City, MO-based Hostess said the Big Texas and Cloverhill brands' distribution strength provides it greater access to the vending, club, cash-and-carry and independent convenience stores sales channels and provides for a strong breakfast partnership with several existing key retailers.

Zurich, Switzerland-based Aryzta acquired Cloverhill Bakery in 2014. In addition to the brands, the acquisition includes supply partnerships with several key retailers of Hostess products.

The deal expands the Hostess range of offerings in the breakfast category of sweet baked goods, including honey buns, Danish pastries and cinnamon rolls. With this acquisition, Hostess said it expects to reduce its reliance on co-manufacturing. Until June 2017, the Cloverhill bakery was a significant co-manufacturer for Hostess.

The acquired assets include inventory, property, plant, equipment and customer relationships serviced by the Chicago Cloverhill bakery facility. The 137,000 square-foot bakery facility is the largest individually-wrapped Danish pastry facility in North America, officials said.

"This acquisition will enhance our competitive position as we have the opportunity to further build our branded distribution and market share in the breakfast category within sweet baked goods, as well as enhance new and existing retailer relationships, particularly in the complementary club and vending sales channels," said Hostess chief operating officer Andy Jacobs.