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Hostess Brands Inc. said United States Bakery Inc. offered to buy certain bread brands for $28.9 million and that McKee Foods Corp., maker of Little Debbie snacks, agreed to pay $27.5 million for its Drake's brand.
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"The contemplated purchase prices for Drake's and the four bread brands, together with our previous announced stalking- horse bid for the majority of our bread business, means we have agreements to sell these assets for at least $440 million," Hostess Chief Executive Officer Gregory F. Rayburn said yesterday in a statement.
United States Bakery agreed to buy the Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brands, four bakeries and 14 depots, plus certain equipment, according to court papers.
"The Drake's brand has its roots in a family baking business, much like McKee Foods and the Little Debbie brand," Mike McKee, chief executive officer of McKee Foods, said in an e-mailed statement. "We believe that Drake's will have a strong future within our family of brands," McKee added.
Drake's products include Devil Dogs, Ring Dings, Yodels, Yankee Doodles, Sunny Doodles, Funny Bones and Drake's Coffee Cake. McKee, based in Collegedale, Tennessee, will buy the brands and specific equipment, according to court papers. statement.
Source: Washington Post | Dawn McCarty
