The Makers of Little Debbie Snacks in Talks to Buy Drake’s from Hostess
McKee Foods Corp. is offering up to 30 million dollars for Hostess Brands Inc.'s Drake's brand, which makes Devil Dogs, Ring Dings and Yodels. McKee Foods is the maker of Little Debbie snack cakes. Hostess filed for bankruptcy protection in November 2012.McKee Foods was founded in 1934 and introduced the Little Debbie brand in 1960, basing the name and logo on the founders' granddaughter, Debbie McKee-Fowler. Little Debbie has annual sales of about $1.1 billion.
Flowers Foods Inc, the maker of Tastykakes and Nature's Own Bread, is offering up to $360 million in cash for five major Hostess brands along with 20 plants and 38 depots. That includes the plant in Biddeford, Maine. Other companies can challenge Flowers at a February 28th auction, with a judge to review the wining bid at a sale hearing on March 5th.