McKee Foods gets sweet deal for Drake's brand
KANSAS CITY, Mo. — McKee Foods stalking horse bid for Hostess Brands' Drake's snack cake brand will be 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.
The company 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 beginning today. United States Bakery, as a stalking horse bidder, has agreed to pay $30 million for the brands, four bakeries and 14 depots, as well as certain equipment.
On March 19, Hostess Brands will seek court approval of several other transactions — including the sale of the majority of the company's bread business to Flowers Food for $360 million, and the sale of its snack cake business to affiliates of Apollo Global Management and Metropoulos & Co.