McKee Foods named as winning bidder for Drake’s snack cakes
Officials with Collegedale's McKee Foods announced Thursday evening that their bid for Hostess Brands Drake's snack cakes will be the one presented for approval to the U.S. Bankruptcy Court.
Leaders didn't receive any other qualified bids for those assets, according to a news release from McKee.
McKee Foods 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.
“We know that Drake’s cakes are unique baked goods that have a loyal following,” Mike McKee, president and CEO of McKee, said in a prepared statement. “McKee Foods is a family-owned bakery, similar to how Drake’s was established as a family bakery 125 years ago. We have generations of experience in baking, and we will strive to bake the Drake’s cakes, not just for taste and quality, but also to deliver on the memories of the loyal Drake’s fans.”
At the end of January, officials announced that McKee Foods Corporation had been selected as the stalking horse bidder for its Drake’s snack cake brand.
A stalking horse bidder is selected by a bankrupt company. It allows the bankrupt company to avoid low bids on assets.
The sale isn't official until the U.S. Bankruptcy Court for the Southern District of New York approves the transaction.
The court is scheduled to address the issue on April 9, according to a news release.
In November, Hostess Brands announced it was going out of business after a weeklong strike by members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, according to Food Product Design.
Earlier this week, a group of investors bought Twinkie brand snacks from Hostess for $410 million, according to Forbes.com.
The Associated Press reported that Apollo Global Management and Metropoulos & Co., which made a joint offer to buy Twinkie, also tried to get Drake products.
Leaders were to review the Apollo and Metropoulos' offer for Drake to see if it qualified. According to Nooga.com archives, if that offer isn't approved, McKee would win out.
