Hostess chooses new stalking horse bidder for Drake’s cakes

McKee Foods will pay $27.5 million for the brand.

January 29, 2013

Hostess Brands has chosen McKee Foods, owner of the Little Debbie brand, as the stalking horse bidder for Drake’s cakes. Drake’s cakes products include Devil Dogs, Funny Bones and Yodels. McKee offered $27.5 million in cash in the transaction. McKee’s bid includes some equipment but not the Drake’s bakery in Wayne, NJ. McKee plans to continue producing Drake’s products in Stuarts Draft, VA. Hostess also chose United States Bakery, Inc. as the stalking horse bidder for its remaining bread brands at $28.9 million.

Shane O’Halloran joined Food Engineering in November of 2012 as Digital/Online Editor. He graduated from Oberlin College in 2010, and worked as a copy editor and contributor to BleacherReport.com and ShesGameSports.com. He has also written feature articles on a freelance basis for publications in the western suburbs of Philadelphia. His areas of expertise include social media campaigns and website management. Shane produces daily news updates for www.foodengineeringmag.com and Food Engineering’s social media sites. In addition, Shane writes news articles for FE’s TechFlash e-newsletter and Food Engineering’s People and Industry section.