Hostess Brands has obtained court approval to sell its Drake's snack cake brand, the final deal in its efforts to liquidate its assets following the company’s bankruptcy filing.
Hostess’s brands and other business assets were divided up amongst five buyers, bringing in a total of $860 million in proceeds.
"The sale of Drake's and the bread brands are the culmination of our efforts to sell the company's major assets," says Gregory F. Rayburn, chairman and chief executive officer, Hostess. "All of the company's beloved brands can now live on and, importantly, we have maximized value for the company's stakeholders."
The buyers of Hostess brands and other assets include:
- Apollo Global Management and Metropoulos & Co: Bought majority of the company’s snack cake business, including the Hostess and Dolly Madison snack cake brands and five bakeries for $410 million. Products include the Twinkies, Ho Hos, Ding Dongs and Donettes brands.
- Flowers Foods: Bought the majority of the company’s bread business, including its Wonder brand, for $360 million.
- McKee Foods: Bought the Drake's snack cake brand, which includes Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake's Coffee Cake, for $27.5 million.
- United States Bakery: Bought the Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brands as well as four bakeries for approximately $30.9 million.
- Grupo Bimbo: Bought the Beefsteak bread brand to affiliates for $31 million.