Hostess completes acquisition of Aryzta Breakfast brands

US- Hostess brands have completed the acquisition of some of Aryzta Llc breakfast assets including Cloverhill bakery facilities, Big Texas and Cloverhill brands.

According to the company, the acquisition which also included supply partnerships with several key retailers of Hostess, adds to its portfolio of fresh baked sweet foods.

The Big Texas and Cloverhill brands will expand the company’s range of breakfast products, linking them to key retail market, stores and reliable customers who will add strength to its market.

The company’s President and CEO William Toler said the acquisition strategy involved expanding the brand portfolio to increase the ability of the business to invest and earn big revenues.

Collaboration with Aryzta was a perfect move to expand baking capabilities, broadening its activities and achieving a broader market cover in the snack business.

“This is an excellent enabling acquisition for the Hostess breakfast strategy and fills a key strategic gap in our product portfolio,” said Dean Metropoulos, Executive Chairman of Hostess.

“The Big Texas and Cloverhill brands and private label partnerships will add significant strength to our growing breakfast business.”

Hostess offers breakfast category of sweet baked goods including HoneyBuns, Danish Pastries and Cinnamon Rolls.

Collaboration with Aryzta brands will see the company explore the bakery and specialty frozen bakery sector, supplying them to both the foodservice and retail markets.

Bill Toller, President and Chief Executive commented that the acquisition allowed the company to bring vital product manufacturing in-house as they expand and drive growth in their breakfast product portfolio.

“We have had a long supply relationship with ARYZTA for our breakfast items and are eager to expand our growing breakfast offerings with these capabilities.

In addition, the positioning and consumer loyalty to the Big Texas and Cloverhill brands will broaden our participation in a number of distribution outlets,” said Andy Jacobs, Chief Operating Officer of Hostess.

“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.

It will as well as enhance new and existing retailer relationships, particularly in the complementary club and vending sales channels.”

Hostess will acquire inventory, property, plant, equipment and customer relationships serviced by the Chicago Cloverhill bakery facility.

With the acquisition, the company anticipates obtaining financial flexibility to consider future uses of cash including funding acquisitions, optional debt repayments or opportunistically simplifying its equity structure.

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