Snacks / Industry News

Hostess Brands selects McKee Foods as winning bidder for Drake’s brand and majority of snack cake business

Hostess Brands Inc. says the stalking-horse bid submitted by McKee Foods Corp., Collegedale, Tenn., for the Drake's snack cake brand will be the bid presented for approval to the U.S. Bankruptcy Court, as no other qualified bids were received for those assets.

McKee has agreed to pay $27.5 million for the Drake's brand and certain equipment. Drake’s products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake’s Coffee Cake. Hostess will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on April 9.

Separately, Hostess Brands proceeded with an auction for its Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands on March 15, after it received additional qualified offers. United States Bakery Inc., as the stalking-horse bidder, has agreed to pay $30 million for the brands, four bakeries, and 14 depots, plus certain equipment.

Earlier that week, Hostess Brands announced that it would present the stalking-horse bid submitted by affiliates of Apollo Global Management, LLC, New York, and Metropoulos & Co., Greenwich, Conn., for the majority of the company’s snack cake business, which includes both Hostess and Dolly Madison branded products, for approval to the U.S. Bankruptcy Court. The company had not received any other qualified bids for those assets.

Apollo and Metropoulos have agreed to pay $410 million to purchase the brands, five bakeries and certain equipment. Among the products included are Hostess’ Twinkies, Ho Hos, Ding Dongs and Donettes snack cakes.

Source: Hostess Brands Inc., PR Newswire

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

James Skinner Baking

An inside look at James Skinner Baking, a modern artisan bakery famous for its Danish.

12/4/14 2:00 pm EST

How a DSD Solution with Sales Forecasting can reduce your Stale Percentages up to 50%

Expert presenters will address how you can improve your order accuracy and account service times and how sales forecasting DSD solutions can reduce your stale percentages.

Snack Food & Wholesale Bakery Magazine

SFWB december 2014

2014 December

December's Snack Food & Wholesale Bakery publication features our cover report: "The J. Skinner Difference" Plus Much More!

Table Of Contents Subscribe

Holiday Baked Goods

What type of baked goods do you buy the most of during the holidays?
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.

STAY CONNECTED

Facebook IconTwitter IconYoutube IconLinkedIn Icon

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!