Hostess Brands Wins Court Approval To Sell Drake'sÂ® And Remaining Bread Brands
KANSAS CITY, Mo., April 9, 2013 /PRNewswire/ -- Hostess Brands Inc. ("Hostess Brands" or "the Company") today announced that it has obtained U.S. Bankruptcy Court approval to sell its Drake's® snack cake brand as well as four of its northwest regional bread brands in two separate transactions totaling approximately $58.4 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," said Gregory F. Rayburn, the Company's Chairman and Chief Executive Officer. "All of the Company's beloved brands can now live on and, importantly, we have maximized value for the Company's stakeholders. We now turn our attention to selling remaining miscellaneous assets and completing the liquidation."
Hostess Brands has now obtained Court approval of five transactions totaling approximately $860 million in proceeds.
U.S. Bankruptcy Judge Robert Drain today approved the following transactions:
- The sale of the Company's Drake's® snack cake brand and certain related assets 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®.
- The sale of the Company's Sweetheart®, Eddy's®, Standish Farms®, and Grandma Emilie's® bread brands, four bakeries, and certain other related assets to affiliates of United States Bakery for approximately $30.9 million.
- The sale of the majority of the Company's snack cake business to affiliates of Apollo Global Management, LLC and Metropoulos & Co. for $410 million. The assets sold include the Hostess® and Dolly Madison® snack cake brands, five bakeries and certain other related assets. Among the products included are the Company's Twinkies®, Ho Hos®, Ding Dongs®, and Donettes® snack cakes.
- The sale of the majority of the Company's bread business, including its Wonder® brand, to affiliates of Flowers Foods, Inc. for $360 million. The assets sold include six of the Company's largest bread brands, 20 bakeries and certain other related assets.
- The sale of the Beefsteak® bread brand to affiliates of Grupo Bimbo, S.A.B. de C.V. for $31.0 million.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV