KANSAS CITY, Mo. – Hostess Brands Inc. announced its completion of the acquisition of certain U.S. breakfast assets of ARYZTA, including one of its Chicago Cloverhill bakery facilities and the Big Texas and Cloverhill brands. In addition to the brands, the acquisition includes supply partnerships with several key retailers of Hostess. Until June 2017, the bakery was a significant co-manufacturer to the company.

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

The Big Texas and Cloverhill brands distribution strength provides Hostess greater access to the club, vending, cash and carry and independent convenience stores sales channels; and provides for a strong breakfast partnership with several existing key retailers. The deal also significantly expands the Hostess range of offerings in the Breakfast category of Sweet Baked Goods (SBG), including HoneyBuns, Danish Pastries and Cinnamon Rolls, among other offerings. With this acquisition, the company expects to reduce its reliance on co-manufacturing.

“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, COO of Hostess.