LENEXA, KAN. — Hostess Brands, Inc. on March 1 announced it has acquired a new facility in Arkadelphia, Ark., with plans to transform the plant into a “bakery of the future.”

In a March 1 Investor Day presentation, Daniel J. O’Leary, chief growth officer at Hostess, said the company will invest between $120 million and $140 million in the 330,000-square-foot Arkansas plant.

“It will unlock approximately 20% capacity across our cake and Donette platforms, and is expected to support our growth algorithm through 2028 based on current demand projections,” Mr. O’Leary said. “It will also enable continued innovation across our portfolio and provide the necessary space to support additional production lines in the future as we continue to grow beyond 2028.

“Unburdened by pre-existing constraints, this facility will leverage all of the best practices accumulated across our bakery network to become our most efficient and flexible operation. We have taken a sustainability-first design approach to this project and are committed to making this the greenest Hostess facility we have, which supports our ESG agenda.”

Mr. O’Leary said acquiring an existing facility for conversion represented Hostess’ lowest cost option, as well as the most sustainable one.

“Design and construction of the facility is ongoing, and we expect it to be operational in the second half of 2023,” he said. “We could not be more excited about this investment and our growth. We are grateful to have made this investment in conjunction with the support of our state and local partners in Arkansas. We look forward to welcoming the new team members who will join our company when the bakery is operational in 2023.”