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.


Fire Causes Estimated $200,000 In Damages At Home On Old East Brainerd Road

A fire at 11316 Old East Brainerd Road caused an estimated $200,000 in damages on Wednesday.    The first engine was on the scene in less than two minutes and reported smoke showing. Six engines and 35 firefighters brought the fire under control in one hour.  The cause is under investigation.  HCEMS Medic 7 was on the scene, but there were no injuries. ... (click for more)

Grand Jury No True Bills And True Bills

Here are the latest no true bills and true bills from the Hamilton County Grand Jury: No True Bills: BAUTISTA, ROBERTO H 25 M 0 1 GS 1538382 STATUTORY RAPE BAUTISTA, ROBERTO H 25 M 0 2 GS 1538383 SOLICITATION OF A MINOR BEARD, HENRY DEWAYNE B 30 M 0 1 GS 1534223 POSSESSION OF MARIJUANA aka FAT BOY, FATS GORE, JASON LAMAR B 30 M 0 1 GS 1537846 SOLICITATION OF A ... (click for more)

What's Wrong With The City Recycle Program? - And Response (2)

Being new to recycling, I have lots to learn.  I rely on 311 and the attendants at the neighborhood collection centers to assist in building my knowledge.   Recently, I had an experience that makes me reconsidered my recycling efforts.  I loaded up my car, called 311 to verify what I could take, only to be blocked by the attendant at my neighborhood collection ... (click for more)

Roy Exum: That Billboard & Much More

Now that early voting has started and our strawberries have hopefully survived this last blush of winter, allow me to catch up on some things but, first, here’s a letter from a concerned reader I feel compelled to share: “There is something I have noticed throughout Brainerd, East Brainerd, Dayton, etc. A billboard has been put up, I believe by the Health Department of Hamilton ... (click for more)

Cuonzo Martin Leaves Tennessee For Job At California

Tennessee basketball coach Cuonzo Martin apparently took his name out of the coaching search at Marquette so he could put it in a hat at the University of California at Berkeley. On Tuesday, Martin broke ties with the Volunteers and accepted the head coaching job with the Bears. Tennessee athletic director Dave Hart admitted Martin’s move surprised him. “Not from my perspective,” ... (click for more)

Mocs Win Women's Southern Conference Championship

The Chattanooga Mocs are your Southern Conference Women’s Golf Champions. That’s five straight team titles and sophomore Emily McLennan (Queensland, Australia) made it the fourth consecutive sweep winning medalist honors. McLennan was solid shooting 222 for her 54 holes on a tough week for scoring. She won by four strokes over Furman’s Taylor Totland and was seven clear of ... (click for more)