Hostess Brands has selected two “stalking horse” bidders for its Drake's snack cake brand and for several of its bread brands.
McKee Foods Corporation has bid $27.5 million for the Drake's brand, which includes Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake's Coffee Cake; United States Bakery has bid $28.85 million for the Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brands, four bakeries and 14 depots, plus certain equipment.
As the stalking horse bidders these two companies have agreed to make the agreed upon initial bid when the outlined brands go to auction March 15.
The Hostess snack cake business and the remaining bread business will most likely be sold in separate transactions.
Hostess announced earlier this month that Flowers Foods had been selected as the stalking horse bidder for the majority of its bread business, including the Nature's Pride and Wonder brands, as well as the Beefsteak bread brand. Those brands will go to auction Feb. 28, at which time Hostess will receive additional bids and select the winning bidder. To read more about the Flower Food agreement, click here.