Hostess Brands announced that the stalking horse bid submitted by Flowers Foods, Inc. for the majority of the assets related to the company's bread business, including the Butternut, Home Pride, Merita, Nature's Pride and Wonder brands, will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.

Flowers has agreed to pay $360 million for the majority of the bread business assets. The agreement includes, in addition to the brands, 20 bakeries, 38 depots and other assets. In a separate transaction, Grupo Bimbo, S.A.B. de C.V. was selected as the winning bidder for the assets related to the company's Beefsteak bread business at the conclusion of the auction. Grupo Bimbo has agreed to pay $31.9 million for the Beefsteak assets.

The company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve both transactions at a hearing on March 19.

"The proposed sales will result in significant proceeds for the benefit of the Company's stakeholders and ensure the beloved bread brands can continue to be enjoyed for years to come," said Hostess Brands chairman and chief executive officer Gregory F. Rayburn.

As previously announced, Hostess Brands is also pursuing the sale of its remaining brands, including Hostess, Dolly Madison, Drake's, Sweetheart, Eddy's, Standish Farms and Grandma Emilie's.

Jones Day provided legal advice to Hostess Brands on the transaction. Perella Weinberg Partners served as the company's financial advisor.