KANSAS CITY, MO -- Hostess Brands Inc. has the go-ahead to sell the majority of its snack cake and bread business in separate transactions totaling about $800 million.
U.S. Bankruptcy Judge Robert Drain has approved the previously announced sale of bankrupt baked goods manufacturer's Hostess and Dolly Madison snack cake business -- including Twinkies, Ho Hos, Ding Dongs -- to Apollo Global Management LLC and Metropoulos & Co. for $410 million.
Drain also gave Hostess the green light for the sale of its Wonder bread brand to Thomasville, GA-based Flowers Foods Inc. for $360 million and its Beefsteak bread brand to Mexico's Grupo Bimbo for $31.9 million.
Hostess will seek court approval of the sale of its Drake's snack cake brand to Collegedale, TN-based McKee Foods Corp., maker of Little Debbie's snack cakes, for $27.5 million at a hearing on April 9. Drake's products include Ring Dings, Yodels, Devil Dogs, Yankee Doodles, Sunny Doodles and Drake's Coffee Cake.
At April 9 hearing, Hostess will also seek permission to proceed with the sale of its Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brands, four bakeries and 14 depots to United States Bakery for approximately $30.9 million.
Irving, TX-based Hostess has retained Hilco Industrial LLC (Grand Rapids, MI) to market and sell its remaining assets, including property and equipment.