* Date for court hearing on $27.5 mln sale is April 9
* Drake's auction canceled in absence of competing bids
* Auction for certain bread brands still on for Friday
By Nick Brown
NEW YORK, March 14 Hostess Brands Inc said on
Thursday that its Drake's snack cake business will be acquired
by McKee Foods Corp, which had submitted a baseline bid of $27.5
million earlier this year.
Hostess, the maker of such iconic goods as Drake's, Twinkies
and Wonder Bread, is liquidating after filing for bankruptcy
last year, its second since 2004.
An auction for Drake's was canceled after no other qualified
bids were submitted. McKee was the only qualified bidder to step
up by Wednesday's deadline, according to a Hostess statement.
An auction for a handful of Hostess' bread brands, including
Sweetheart, Eddy's, Standish Farms and Grandma Emilie's, will go
forward on Friday after the company received additional offers
on top of a $30 million baseline bid from United States Bakery
A spokesman for Hostess on Thursday declined to name the
The majority of its snack cake business, including Twinkies,
is scheduled to be sold for $410 million to Apollo Global
Management and Metropoulos & Co. Most of its bread
business, including Wonder Bread, will be sold to Flowers Foods
Inc for $360 million, while its Beefsteak bread brand
will go to Grupo Bimbo for $31.9 million.
Those sales are up for court approval on Tuesday at a
hearing in U.S. Bankruptcy Court in Manhattan.
The Drake's sale, which includes Drake's Coffee Cake, Ring
Dings, Devil Dogs and other products, is set for a hearing on
The bankruptcy is In re Hostess Brands Inc, U.S. Bankruptcy
Court, Southern District of New York, No. 12-22052.