Hostess Brands Inc. won approval to sell its Drake’s snack-cake brands to McKee Foods Corp., makers of Little Debbie cakes.
U.S. Bankruptcy Judge Robert Drain in White Plains, New York, today approved the sale to McKee, which made the only qualified bid for the brands. McKee will pay $27.5 million for Drake’s products including Devil Dogs, Ring Dings, Yodels, Yankee Doodles, Sunny Doodles, Funny Bones and Drake’s Coffee Cake.
Drain also approved the sale of certain bread brands to United States Bakery. The company will pay $30.9 million for the Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands, four bakeries and 14 depots, plus certain equipment. Last month Drain approved sales to Flowers Foods Inc. (FLO), Grupo Bimbo SAB (BIMBOA), Apollo Global Management LLC (APO) and C. Dean Metropoulos & Co. for most of Hostess’s cake and bread brands.
Hostess, founded in 1930, is liquidating its brands, recipes, plants and other assets after failing to reach an agreement with striking bakers on concessions to help the company emerge from its second bankruptcy.
The case is In re Hostess Brands Inc., 12-bk-22052, U.S. Bankruptcy Court, Southern District of New York (White Plains).
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