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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