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: ABERCROMBIE, TYLER ROBERT  86 LOCH DRIVE ROSSVILLE,  Age at Arrest: 22 years old Arresting Agency: East Ridge FAILURE TO APPEAR/COMPLY --- ADDINGTON, ANGLEA DENISE  516 LADD AVE RED BANK, 37415  Age at Arrest: 39 years old Arresting Agency: Hamilton County POSSESSION OF LEGEND ... (click for more)

Lifetime Handgun Carry Permit Drops In Price

Tennessee citizens with a valid handgun carry permit now have the option to upgrade to a lifetime permit for a lower cost.  In 2016, the 109 th  General Assembly lowered the renewal fee on lifetime handgun carry permits from $500 to $200.  The new fee for an original permit is now $100, and the permit is now issued for eight years. If one currently has a permit ... (click for more)

Beyond Freedom Of Speech - And Response

Yes, most people know about the First Amendment to our Constitution, "The right, guaranteed by the First Amendment to the U.S. Constitution, to express beliefs and ideas without unwarranted government restriction."  I being a "deplorable" draw the line when people block traffic, try to disrupt, and even stop an activity through malice and disregard for others. Case being ... (click for more)

Roy Exum: Where Is Central’s Auditorium?

I am surely one of the biggest proponents of high school athletics there is, especially after half a decade of being an eye witness to the vast array of lessons that are learned every day by anyone associated with sports. That said, I have watched the Hamilton County Commission waffle on a $500,000 track at Central High School with a certain curiosity because the same high school ... (click for more)

Tyner Outshoots Brainerd In Big 6-AA Battle

Brainerd’s Jackson-High Gymnasium was filled to capacity long before the girls game had ended Tuesday night, but the overflow crowd had come to see the second meeting between Tyner and Brainerd and a battle for first place in District 6-AA. Both are ranked in the latest state Class AA poll with Tyner listed sixth and Brainerd ninth.  Brainerd had won all four meetings ... (click for more)

No. 3 Cleveland Sneaks Past Walker Valley 59-51

CLEVELAND, Tenn. – State-ranked Cleveland blew most of a 13-point second-half lead, but got clutch field goals from Deontae Davis and KK Curry down the stretch and managed to stay unbeaten in District 5-3A high school basketball action with a hard-fought 59-51 victory over rival Walker Valley on Tuesday night. Walker Valley’s girls defeated the Lady Blue Raiders 43-39 in overtime. ... (click for more)