McKee Foods Pledges $27.5 Million To Buy Portion Of Hostess Holdings

Monday, January 28, 2013

Hostess Brands, Inc., announced that the finacially-ailing company has selected McKee Foods Corporation in Collegedale as "the stalking horse bidder" for its Drake’s snack cake brand and certain equipment.

As stalking horse bidder, McKee Foods sets the bar for bidding in a future auction process to be set by the bankruptcy court, officials said. Other interested parties will be able to bid at that time, but their bids would have to exceed the one made by McKee Foods.

Under the stalking horse agreement, McKee Foods Corporation has agreed to pay $27.5 million for the Drake’s brand and specific equipment. Drake’s products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake’s Coffee Cake.

“This represents an opportunity for McKee Foods to complement our product line in a very competitive snack cake industry,” said Mike McKee, president and CEO of McKee Foods. “The Drake’s brand has its roots in a family baking business, much like McKee Foods and the Little Debbie brand. We believe that Drake’s will have a strong future within our family of brands.”

Hostess selected the McKee Foods Corporation bid after Perella Weinberg Partners, Hostess' financial advisor, conducted a bidding process that involved contacting 171 potentially interested parties, 88 of which signed confidentiality agreements.

Founded in 1934 by O.D. and Ruth McKee, McKee Foods Corporation has grown to become America’s leading family-owned snack cake bakery. McKee Foods offers more than 90 varieties of Little Debbie and 32 varieties of Sunbelt Bakery snacks and cereals are sold in all 50 states, Canada and Puerto Rico. The company is headquartered in Collegedale and has production facilities in Gentry, Ark., and Stuarts Draft, Va., and a warehouse and distribution center in Kingman, Ariz.

 

McKee Foods also owns the Collegedale-based subsidiaries Blue Planet Foods, manufacturer of high-quality granola products including Heartland cereals and pie shells, and Fieldstone Bakery, which provides institutional food service organizations with nutritious, high-quality snacks and cereals.


Morning Fire Displaces Family Of 3 On W. 45th Street

A mother and her two adult sons will have to find another place to live after fire raced through their home at 510 W. 45th Street early Wednesday morning. One of her sons woke up shortly before  4 a.m.  and discovered the house was on fire. He told firefighters that he woke up his brother and both got out of the house uninjured. They did not have their phones with them, ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ALLEN, DEMETRIUS JAY  732 W 12TH ST CT CHATTANOOGA, 37402  Age at Arrest: 23 years old Arresting Agency: Chattanooga THEFT OVER 500 CRIMINAL TRESPASSING --- ALLEN, DONNA LYNN  1807 LAKEWOOD AVENUE SODDY DAISY, 37379  Age at Arrest: 37 years old Arresting Agency: Chattanooga ... (click for more)

Downtown Needs Cleaned Up

My son and I parked on Broad Street and walked to the Billiard Club on Cherry Street this past weekend. It's probably a total of two blocks. In that short walk we passed where Rone Regency used to be on 6th Street and in that doorway was about a years worth of human feces and urine covering the doors and walls. The concrete sidewalk on the street is all broken up and the metal ... (click for more)

Roy Exum: 40 Questions About ‘Blue Bags’

No. 1 – Did you know that one in every five of the 42,000 children in the Hamilton County school district is what the experts call “food deprived?” No. 2 – Can you get your arms around the fact that a huge percentage of those 8,400 children get little, if nothing, to eat from Friday at lunch until they return to our schools on Monday? No. 3 -- Did you know that you – just ... (click for more)

Unbeaten Baylor Volleyballers Roll Past Soddy Daisy

The 2016 high school volleyball season is only 10 days old, but the Baylor Lady Red Raiders are already playing in mid-season form. Fresh off a strong weekend where they beat perennial state power Brentwood twice en route to winning the prestigious Early Bird Tournament in Knoxville, the Lady Raiders continued that consistent strong play on Wednesday evening as they made short ... (click for more)

Nine Headed To East Ridge Hall Of Fame On Sept. 9

East Ridge will induct nine people into its Hall of Fame at halftime of the Central-East Ridge football game on Sept. 9. The 2016 inductees: 1.  DAVID COPELAND - 1964-1967. Played football and track for three years. Captain of both sports. Earned a football scholarship to the University of Tennessee. 2.  CARLENE ELLIOTT RYON - 1964-1967. Played basketball ... (click for more)