McKee Food Corporation has acquired Drake's snack cake brand from Hostess Brand Inc., after winning the bid presented for approval by the US Bankruptcy Court. McKee Foods was the only qualified bidder for the Drake asset. Hostess will request the U.S. Bankruptcy Court for the Southern District of New York approve the transaction at a hearing scheduled for Tuesday, April 9. The sale will not be final until this approval is granted.
"We know that Drake's Cakes are unique baked goods that have a loyal following," said Mike McKee, president and CEO. "McKee Foods is a family-owned bakery, and similarly Drake's was established as a family bakery 125 years ago. We have generations of experience in baking, and we will strive to bake the Drake's cakes, not just for taste and quality, but also to deliver on the memories of the loyal Drake's fans."
The investment will cost McKee Foods $27.5 million for the Drake's brand and the equipment needed to continue production. Drake's products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles, and the star of the show, Drake's Coffee Cake - made famous through an episode of Seinfeld.
McKee Foods Corp., was founded in 1934 by Ruth McKee and has since grown to a size measurable as the leading family-owned snack cake bakery in the US. The company owns and offers many varieties of loveable and tasty sweets, including most of the Little Debbie line, Sunbelt Bakery snacks and cereals sold not only in all 50 states but in Canada and Puerto Rico as well. The company is headquartered in Tennessee and has production facilities in Arkansas, Virginia, and a distribution center in Arizona. McKee is also the owner of Tennessee-based subsidiaries Blue Planet Foods, which manufacture quality granola products. The products provide institutional food service organizations with nutritious, delectable, high-quality snacks and cereals.
McKee will have the rights to some of the best coffee cake around after it acquires the ownership of Drake's Cakes.
