Where does the sale of Hostess stand? Hostess Brands Inc. announced that it has obtained U.S. Bankruptcy Court approval to sell the majority of its snack cake business and the majority of its bread business in separate transactions totaling approximately $800 millionin proceeds.
"We embarked on the sales process with one overarching goal – to maximize value for all of the Company's stakeholders – and I am pleased to report that we have been successful," said Gregory F. Rayburn, the Company's Chairman and Chief Executive Officer. "I'd like to thank all of the employees and advisors who supported the process and helped preserve the value of some of the most beloved brands in the U.S."
Hostess Brands will seek Court approval of the following transactions at a hearing on April 9: The sale of the Company's Drake's® snack cake brand and certain equipment to affiliates of McKee Foods Corporation for $27.5 million. Drake's products include Ring Dings®, Yodels®, Devil Dogs®, Yankee Doodles®, Sunny Doodles®, and Drake's Coffee Cake®. They also hope to sell Sweetheart®, Eddy's®, Standish Farms®, and Grandma Emilie's® bread brands, four bakeries, and 14 depots, plus certain equipment to affiliates of United States Bakery for approximately $30.9 million.