Food Engineering

Hostess chooses new stalking horse bidder for Drake’s cakes

McKee Foods will pay $27.5 million for the brand.

January 29, 2013

Hostess chooses new stalking horse bidder for Drake’s cakes

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.