WHITE PLAINS, N.Y. – Hostess Brands, Inc. has received U.S. bankruptcy court approval to sell its Drake’s snack cake brand as well as four of its northwest regional bread brands in two separate transactions totaling about $58.4 million in proceeds, the company said April 9.
Judge Robert Drain approved a sale to McKee Foods Corp. of the Drake’s snack cake brand for $27.5 million. Judge Robert Drain also gave his okay for United States Bakery to purchase the northwest U.S. business of Hostess for $30.9 million. The transaction includes 4 baking plants, 14 depots and such brands as Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s.
“The sale of Drake's and the bread brands are the culmination of our efforts to sell the company's major assets," said Gregory F. Rayburn, chairman and chief executive officer for Hostess Brands. "All of the company's beloved brands can now live on and, importantly, we have maximized value for the company's stakeholders. We now turn our attention to selling remaining miscellaneous assets and completing the liquidation."
The judge earlier approved the largest Hostess sales with most of the bread business to be acquired by Flowers Foods, Inc., and most of the snack cake business to be acquired by a private equity group lead by Apollo Global Management L.L.C. and C. Dean Metropoulos & Co.Also approved and closed is the Beefsteak rye business, acquired by Grupo Bimbo S.A.B. de C.V.