Industry News

McKee Foods to bid on Hostess brand Drake’s

January 28, 2013

Hostess Brands Inc. is close to securing initial bids for its Drake’s cake business and four bread operations that could net the bankrupt bakery company more than $50 million, according to a source familiar with the matter. An announcement of the deals, part of the company’s bankruptcy reorganization, could come on Monday, according to the source, who requested anonymity because the talks are not public.

Collegedale, Tenn.-based McKee Foods, maker of Little Debbie snack cakes, is expected to offer roughly $27 million for Drake’s, which makes Devil Dogs, Ring Dings and Yodels, said the source, noting negotiations were ongoing so the final price could change

United States Bakery Inc., also known as Franz Family Bakery, is expected to bid about the same amount for Hostess bread brands, including Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s, according to the source.

Hostess and McKee declined to comment. An official at Franz, a fourth-generation, family-owned company based in Portland, Ore., was not immediately available

These “stalking horse bids” set baseline offers for the assets and are still subject to auctions.

Earlier this month, Hostess chose Flowers Foods Inc to start the bidding at $390 million for its bread brands including Wonder, Butternut, Home Pride, Merita and Nature's Pride.

Still outstanding is Hostess’ iconic Twinkies brand. The company's lawyer said last week that Hostess was in advanced discussions with a number of parties for the remainder of its snack business, including Twinkies.

Hostess received court permission to wind down its 82-year-old business in November after a strike by a bakery union crippled its operations. The company is liquidating all its assets.

Source: Reuters

Did you enjoy this article? Click here to subscribe to Snack Food & Wholesale Bakery Magazine 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Blue Diamond Almonds Facility

Blue Diamond Almond’s new  processing facility in Turlock, CA.

11/7/13 2:00 pm EST

Food Plant of the Future: The Future of Wastewater Management

Available On-Demand Effective management of wastewater is becoming increasingly critical to food and beverage processors as the cost for incoming water increases...

Snack Food & Wholesale Bakery Magazine

Cover Image

2014 August

This month's publication of Snack Food & Wholesale Bakery takes a special look at Blue Diamond's growers and advanced technology, as well as a tour through the Blue Diamond production plant in Turlock, CA.

Table Of Contents Subscribe

School Lunches

Millions of children will soon be returning to school, lunchboxes in hand. What was your favorite lunchbox treat when you were a kid?
View Results Poll Archive

THE SNACK AND BAKERY STORE

organic-production-&-food-q.gif
Organic Production and Food Quality: A Down to Earth Analysis

Effects of Organic Production on Food Quality is the first comprehensive book on how organic production methods influence the safety and quality of foods, based on an unbiased assessment of the latest scientific findings.  The title is a 'must-have' for everyone working within the food industry.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

The Weekly Mix

Operations Weekly Logo

Written by Snack Food & Wholesale Bakery editors, our Operations Weekly weekly enewsletter provides bakers and snack food manufacturers with up-to-the-minute news, ideas and industry trends.

Sign up today!

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon