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: ANDREWS, WINDA FAYE 4902 GOLFVIEW DR CHATTANOOGA, 37411 55 Chattanooga FAILURE TO APPEAR BENN, MARCUS ANTAWAN 3216 6TH AVE CHATTANOOGA, 37407 29 Chattanooga SIMPLE ASSAULT CONTRABAND IN PENAL INSTITUTIONS BLAIS, CANE CHRISTIAN 2824 SYDNEY STREET JACKSONVILLE, 32206 21 Hamilton ... (click for more)

Former Meigs County Official Connie Allen Indicted On Theft Charge

An investigation by special agents with the Tennessee Bureau of Investigation has resulted in the arrest of a former Meigs County interim finance director on theft charges. At the request of 9 th  District Attorney General Russell Johnson, TBI special agents began investigating Connie Allen on Nov. 24, 2014. TBI agents worked in conjunction with the Tennessee Comptroller ... (click for more)

Finley Stadium Needs To Grow Up - And Response

RE:  Finley Stadium Financial Picture Rosy; Beer And Alcohol Sales Approved; AstroTurf Almost Ready and City, County Pitching In $250,000 Each For New Finley Stadium AstroTurf I read a story here five days ago about a rosy future for Finley stadium. It lead me to believe that the stadium was making money and even improvements with donations.  Then we get a short ... (click for more)

Roy Exum: Mom’s Parting Instructions

My mother, Helen Exum, went to be with the Lord in late August of last year and, in the way folks do, I was going through some of her files last week when I ran across an envelope with my name on it. Inside was a story and written in her hand were the words, “This is a wonderful story for you to tell!” Not being one to disobey my mother and not about to waylay the wishes of the ... (click for more)

Southside Smacks Raiders, 13-11, On Wiley's Walk-Off Slam

Southside High School, located in Fort Smith, Ark., didn’t travel 600-plus miles to waste a scintillating comeback against Cleveland on Friday in the Pounder Classic at Central High School. Spotting the Blue Raiders a 7-0 first-inning lead, Southside tied the game in the sixth and then shocked Cleveland with a six-run rally in the last of the seventh – Tanner Wiley, breaking ... (click for more)

Tennessee Fires Basketball Coach Donnie Tyndall

KNOXVILLE, Tenn.  – Tennessee has fired men’s basketball coach Donnie Tyndall. The decision was made based on information the university received during the NCAA's investigation of another institution. The university concluded that Tyndall will likely be held responsible for serious violations of NCAA rules that occurred during his tenure as head men's basketball ... (click for more)