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.


Latest Hamilton County Jail Booking Report

Here is the latest jail booking report from Hamilton County: ANDERSON, ADEN M 730 EAST AVE CHATTANOOGA, 37411 28 Chattanooga CRIMINAL TRESPASSING ASLINGER, JEFFERY JAMES 1504 GREEN POND ROAD SODDY DAISY, 37379 44 Soddy Daisy DRIVING ON REVOKED LICENSE POSSESSION OF DRUG PARAPHERNALIA BATES, JOE EDWARD 2472 ELLA DR CLEVELAND, 37323 20 ... (click for more)

Fort Oglethorpe Arrest Report For Dec. 12-18

Here is the Fort Oglethorpe arrest report for Dec. 12-18: Marshall George Wilson, 53, of 75 Pineridge Drive, Rossville was arrested December 17 on charges of child molestation, rape and aggravated sodomy.   Stephon Q. Bishop, 19, of 122 Lilac Lane, Fort Oglethorpe was arrested December 12 on a probation violation. Anthony Lynn Duckett, 32, of 92 Breezy Trail, ... (click for more)

Please Don't Close The Piccadilly Cafeteria At Hamilton Place - And Response

Oh, no. The Piccadilly Cafeteria at Hamilton Place is closing.  Its last day is Christmas Eve.  I will miss the great food they have there but most of all I will miss their servers, cashiers and waitresses.  They are all so friendly and accommodating.  They make it like it’s a home-style restaurant. I sure wish there was some way that Hamilton Place and ... (click for more)

Roy Exum: ‘Scrooge’ Of The Year

As we move into the last weekend before Christmas, the “Scrooge of the Year” has just appeared in Aurora, Ill. Actually Connie Ley has just died. She passed away on Nov. 25, but in her wake left the worst will many around the country have ever heard – her last wishes included that her nine-year-old dog should be put to death, cremated, and buried with her. Bela, a beautiful German ... (click for more)

Red Bank Falls To Riverdale, 77-64, In Rhea Tournament

 EVENSVILLE, Tenn. – Red Bank Nick Fike has a method to his madness. Fike has the Lions playing in this week’s Hoops Holiday Tournament at Rhea County High School and also will guide them in the Sonic Shootout at White County on Dec. 27 and 29-30. “It’s all about getting ready for the district (6-AA) tournament,” Fike said Friday night after the Lions fell to Class AAA ... (click for more)

McCallie, Cleveland lead McCallie Mat Tourney

Two former McCallie Invitational champs - host McCallie and Cleveland - are one-two in the team standings, respectively, and head into Saturday morning with a combined 13 wrestlers in the championship semifinals. McCallie, who last won this tourney in 2010 has seven wrestlers in the semis, while the Blue Raiders captured the inaugural event in 1981 under former head ... (click for more)