McKee Foods Corporation Named As Winning Bidder For Drake’s Snack Cakes

Thursday, March 14, 2013

Hostess Brands Inc. on Thursday announced that the stalking horse bid submitted by McKee Foods for the Drake’s snack cake brand will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.

“We know that Drake’s Cakes are unique baked goods that have a loyal following,” said Mike McKee, president and CEO. “McKee Foods is a family-owned bakery, similar to how Drake’s was established as a family bakery 125 years ago. We have generations of experience in baking, and we will strive to bake the Drake’s cakes, not just for taste and quality, but also to deliver on the memories of the loyal Drake’s fans.”

McKee Foods has agreed to pay $27.5 million for the Drake’s brand and certain equipment. Drake’s products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake’s Coffee Cake. Hostess will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on Tuesday, April 9. No part of the sale will be final until this approval is granted.

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