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Hostess acquires two brands from Aryzta LLC

Hostess purchases Big Texas and Cloverhill to expand in snacks and breakfast foods

The American cakes company, Hostess Brands Inc., has announced its acquisition of Big Texas and Cloverhill.

Hostess has purchased the brands from American food firm, Aryzta LLC, along with one of Cloverhill’s Chicago bakeries.

The bakery is North America’s largest facility for individually wrapped Danish pastry, allowing the company to enhance its product manufacturing.

It is anticipated the acquisition will see Hostess expand its presence in the breakfast foods market, as it will feature products such as Honey Buns, Danishes, and Cinnamon Rolls.

The firm’s President and CEO, Willian Toler, has notably marked out Hostess’ strategy for acquisitions – stating plans to leverage the brand model, expand the company’s snack products, especially baked goods, and supply additional cash flow.

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“This strategic acquisition allows us to bring important product manufacturing in-house as we expand and drive growth in our breakfast product portfolio,” said Bill Toler.

“In addition, this purchase will enable Hostess to forgo in-house capital investments and create significant value over the next few years.”

There has been an increase in the demand of easily accessible, on-the-go food in the US, which Hostess can tap into through the breakfast baked goods.

“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,” stated Andy Jacobs, COO of Hostess.

“In addition, the positioning and consumer loyalty to the Big Texas and Cloverhill brands will broaden our participation in a number of distribution outlets.”

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