Hostess Names Winning Bidders for Bread, Cake Brands
Hostess said that it has selected United States Bakery’s approximately $30.9 million offer as the winning bid for the company’s Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands, four bakeries, and 14 depots, plus certain equipment.
The United States Bakery offer was selected as the highest and best bid at a March 15 auction. The company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on April 9.
The final offer represents a 2.8% increase over United States Bakery’s original stalking horse bid.
In addition, Hostess announced that the stalking horse bid submitted by McKee Foods for the Drake’s snack cake brand will be the bid presented for approval to the U.S. Bankruptcy Court as no other qualified bids were received for those assets.
McKee has agreed to pay $27.5 million for the Drake’s brand and certain equipment. Drake’s products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake’s Coffee Cake. The company will ask the U.S. Bankruptcy Court for the Southern District of New York to approve the transaction at a hearing on April 9.
Hostess said other proposed transactions include:
Jones Day provided legal advice to Hostess Brands on all of the transactions. Perella Weinberg Partners served as the company’s financial advisor.
Previously on abfjournal.com:
Hostess Sues Kroger Over $2.8MM in Unpaid Invoices, Tuesday, March 05, 2013