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Hostess Brands Likely to Be Purchased by Mexico's Grupo Bimbo Brand

Twinkie and Ho-ho lovers rejoice! Hostess Brands is more than likely going to be purchased by Mexico's Grupo Bimbo Brand as the baker prepares to shut down its plant in Illinois and liquidate its assets within 33 different locations. Global firms have already shown interest in the now bankrupt company per reports from industry experts. Restructuring expert David Pauker hinted to Reuters the likely fate of Wonderbread and other Hostess products by stating: "[Products] most likely will be purchased by a competitor that will bolt the additional sales to a more efficient delivery system. The company itself won't survive." So far ConAgra, Flowers Food, and McKee Foods have shown little interest in buying the faltering Hostess company.

Insiders have indicated that Mexican bakery Grupo Bimbo's decades old interest in Hostess may be what resurrects Hostess as Grupo seeks to expand its net worth and North American portfolio. Despite Grupo's interest, the fate of Hostess remains uncertain due to high sugar prices, lowered sales, union troubles, and trade tariffs. It is likely job losses will remain with over 18,000 workers displaced by the liquidation of Hostess yet some experts, like Cato Institute economist Chris Edwards, are optimistic. Edwards offered his perspective on the possible buy out with "It may well be that other U.S. producers step into the voice and expand [Hostess'] U.S. production, in which case the Hostess liquidation might not be a total loss."

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