NEW YORK CITY -- Hostess Brands Inc. has picked McKee Foods as the buyer for its Drake's business, which includes the iconic Devil Dogs, Yankee Doodles and Yodels snack cake brands.
An auction scheduled for March 15 was cancelled after bankrupt Hostess did not receive a qualifying bid to top McKee's $27.5 million offer. A hearing to approve the sale is scheduled for April 9.
Collegedale, TN-based McKee Foods, which makes Little Debbie snack cakes, has not said when it plans to have Drake's cakes back on shelves.
Separately, investment firms Metropoulos & Co. and Apollo Global Management, which together are buying Twinkies, Ding Dongs, Ho Hos and other Hostess cakes, said they hope to have the snacks back on shelves by this summer. | SEE STORY
Earlier this month, Hostess also canceled auctions for Twinkies and its major breads after receiving no competitive offers for those brands. Hostess picked Flowers Foods as the buyer for Wonder and other bread brands. Grupo Bimbo, which makes Thomas' English muffins, is buying its Beefsteak bread business.