US: McKee Foods to buy Hostess cake brand Drake's
By Dean Best | 15 March 2013
Privately-owned US group McKee Foods looks set to be the latest buyer of assets from bakery giant Hostess Brands.
Hostess, which is selling off assets and brands after deciding to wind down the business last year, said McKee was the only bidder in an auction for its Drake's snack ckae brand.
McKee bid US$27.5m for the Drake's brand and "certain equipment". Hostess will put the offer to the US Bankruptcy Court for the Southern District of New York on 9 April.
Hostess, meanwhile, has said it will start an auction for bread brands including Sweetheart and Standish Farms after receiving a number of offers.
Next week, Hostess will put three other deals up for court approval. Earlier this week, private-equity firms Apollo Global Management and Metropoulos & Co. agreed to pay $410m for the majority of Hostess's snack cake business, including the Twinkies brand.
Earlier this month, US bakery group Flowers Foods struck a deal to buy the bulk of Hostess's bread business, including the Wonder brand, for $360m. The US government, however, has objected to this deal. Last week, Attorney Preet Bharara, however, filed an objection in the US Bankruptcy Court in Manhattan this week, claiming the deal frees the buyer of liabilities and limits the government's ability to regulate.
March has also seen Hostess agree to sell its Beefsteak brand to Mexico's Grupo Bimbo for $31.9m.
The court will rule on these deals on Tuesday (19 March).
Sectors: Bakery, Mergers & acquisitions, Snacks
Companies: Hostess Brands, Flowers Foods, Grupo Bimbo
View next/previous articles
15 Mar 2013 -
Currently reading -
US: McKee Foods to buy Hostess cake brand Drake's
15 Mar 2013 -
Related research
Hostess Brands, Inc. - Strategic SWOT Analysis Review
Hostess Brands, Inc. (Hostess) is a wholesale baker and distributor of fresh baked bread and sweet goods. It offers a variety of products including breads, buns, rolls, croutons, stuffing, dressings, snakes cakes, donuts and other related products un...
Flowers Foods, Inc. - SWOT, Strategy and Corporate Finance Report
Flowers Foods, Inc. - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and...
Flowers Foods, Inc.: Consumer Packaged Goods Company Profile, SWOT & Financial Report
Canadean's "Flowers Foods, Inc.: Consumer Packaged Goods Company Profile, SWOT & Financial Report" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, SWOT analys...
Related articles
On the money: Flowers confident on cakes ahead of Hostess return
US baker Flowers Foods has said it is "confident" its snack cake business will continue to thrive even as the new-look Hostess Brands returns to the market, with products including Twinkies.
US: Acquisition boosts Flowers Foods Q1
US baker Flowers Foods recorded an increase in earnings in the first quarter driven by gains from a recent acquisition.
There are currently no comments on this article
Be the first to comment on this article