Flowers Foods, Inc. (NYSE:FLO) entered into a stalking horse agreement to acquire the Beefsteak Rye Brand from Hostess Brands, Inc. for $30 million in cash on January 11, 2013. The transaction does not include facilities or additional assets. Flowers Foods would finance the transactions through a mix of available cash on hand, committed credit facilities and other debt.

Flowers would be entitled to a break-up fee equal to 3.5% of the purchase price in the event that it is not the winning bidder at the auctions. The transaction is subject to the approval of the bankruptcy court, regulatory approvals, regulatory clearance under the Hart- Scott- Rodino Antitrust Improvements Act of 1976 and customary closing conditions. Perella Weinberg Partners LP acted as financial advisor to Old HB, Inc. John Kane, Bob Profusek, Lisa Laukitis, Heather Lennox, Phil Proger, Mike Knight, Will Herzberger and Mary Beth Deemer of Jones Day acted as the legal advisor for Hostess.

Kilpatrick Townsend & Stockton LLP and Crowell & Moring LLP acted as the legal advisor and Deutsche Bank acted as the financial advisor for Flowers Foods.