Wednesday, March 12, 2014
Hostess Brands Inc. won approval Tuesday to sell off the last of its major cake and bread brands, bringing the total proceeds from its liquidation to about $860 million.
A U.S. Bankruptcy Court judge in New York approved the two deals, said Hostess spokeswoman Anita-Marie Laurie.
McKee Foods Corp., the maker of Little Debbie snack cakes, is buying the Drake’s business for $27.5 million, gaining Devil Dogs, Ring Dings, Yankee Doodles and other products.
United States Bakery Inc. is buying Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brand, plus four bakeries and 14 depots for $30.9 million.
The two buyers had been lead bidders for their purchases.
Irving, Texas-based Hostess filed for Chapter 11 protection in January 2012 after years of turmoil. It announced in November that it was going out of business and selling its brands after a nationwide strike by its bakers union crippled operations.
Flower Foods Inc. earlier bought five Hostess bread brands for $360 million. Other cake brands were sold to two investment firms for $410 million.