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.


Man Shot On Walker Avenue Friday Night

The Chattanooga Police Department is investigating a shooting that happened at about 10:10 p.m. Friday at 1700 Walker Ave.  Officers were told the victim had been taken to a local hospital.  Mark Parker, 51, stated he was in the 1700 block of Walker Ave. when he was approached by a black male who pulled a firearm and shot him.  Mr. Parker sustained non-life ... (click for more)

Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ABRAHAM, CHRISTIAN  4921 FRONTAGE ROAD CLEVELAND, 37321  Age at Arrest: 22 years old Arresting Agency: Chattanooga DRIVING ON REVOKED, SUSPENDED OR CANCELLED LICENSE SPEEDING SEAT BELT LAW VIOLATION --- ADAMS, MARDARREIUS FOOQUON  707 RICHARDSON STREET ROSSVILLE, 30741  Age at ... (click for more)

Chattanooga Is A Blessed Community

I am an American by birth and a Chattanoogan by the Grace of God. (A phrase I borrowed from the late Lewis Grizzard and modified) I grew up in Chattanooga / East Ridge – Anna B. Lacey Elementary, Dalewood Junior High, Brainerd High, degree UTC.  My family lived in Chattanooga until March of this year but I’m still up every month visiting friends.   I have been following ... (click for more)

Roy Exum: We Fight For Lieutenant Commander White

The United States Navy has run a tight ship since it was founded in October of 1776. You’ll recall that was when Capt. John Paul Jones began to forge the steel with the words, “I have not yet begun to fight.” Some years later Adm. David Farragut etched himself into Navy lore when he cried, “Damn the torpedoes! Full speed ahead!” During the attack on Pearl Harbor, Lt. Howell Forgy ... (click for more)

CFC Returns To National Championship With 3-0 Semifinal Win

The Chattanooga Football Club didn't score until the 69th minute but after Chris Ochieng's first goal, they would score two more to earn a 3-0 win over visiting Indiana Fire.   The NPSL national semifinal win, before more than 9,200 fans, gives Chattanooga another shot at a national championship after losing to the New York Red Bulls U23 team in the 2014 final.   ... (click for more)

PHOTOS: Chattanooga FC Shuts Out Indiana By 3-Nil