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.


Many Waldens Ridge Scenes Featured In Stokes Picture Book

A number of early views of Waldens Ridge are among the rarities found in the Stokes Photo Collection. There are many photos of the roads up the mountain showing streetcars, wagons and early autos. There are scenes at Rainbow Lake, Falling Water Falls, Signal Point and other scenic spots. Several photos are included of the Signal Mountain Hotel. The more than 700 photos ... (click for more)

Man Shot At Apartments On Tunnel Boulevard Wednesday Afternoon

Chattanooga police officers responded to the apartment buildings at 404 Tunnel Blvd. Wednesday at 1:21 p.m., where residents say they heard multiple shots fired.  Witnesses said they saw multiple suspects fleeing the scene on foot behind the complex.  The male victim was taken to a local hospital for life threatening gunshot wounds.  Chattanooga Police ... (click for more)

Chattanooga Has Lost Its Most Popular Citizen - Luther Masingill - And Response

Chattanooga has lost its most popular citizen – Luther Masingill. Although we are saddened we cherish the memories.  All of us have a Luther story.  Mine is the first time I met Luther.  This was before TV and all of Chattanooga listened to Luther on the radio.  I was 12-years-old.  Some of my buddies and I had gone to the State Theater in downtown ... (click for more)

Roy Exum: The Policeman’s Prayer

Every year, when the Law Enforcement Foundation of Greater Chattanooga holds its annual luncheon, it is one of the most heartening displays of what America really believes, down deep inside. The most prominent and influential leaders in the community – well over 1,000 -- gather to pay tribute and pledge their support to our heroes in blue who are unfaltering in their devotion, service ... (click for more)

Boyd-Buchanan Sweeps Loretto To Open Class A State Volleyball

(Story will be updated) MURFREESBORO, Tenn. – Playing what coach Alfie Dodd called a sub-par match, Boyd-Buchanan’s Lady Bucs were still good enough to sweep Loretto, 3-0, Wednesday in the opening match of the Tennessee Secondary School Athletic Association’s Class A state volleyball tournament at Blackman High School. Set scores were 25-19, 25-14, 25-20. With the ... (click for more)

Red Bank Loses In State Volleyball Opener

SMYRNA, Tenn. – The TSSAA State Volleyball tournament didn’t start off like the Red Bank Lionettes would have liked. Facing the Lady Irish from Knoxville Catholic here at Stewarts Creek High School in the first match Wednesday morning, the Lionettes never got comfortable and lost in three sets, falling by scores of 25-16, 25-13 and 25-19. Red Bank got an ace from Allison Walker ... (click for more)