Hostess turns focus to completing liquidation
KANSAS CITY – With five major transactions now approved, Hostess Brands, Inc. said it will focus on completing its liquidation. The company will continue to work with Hilco Industrial, L.L.C. to sell remaining assets, such as property and equipment.
Hostess Brands, Inc. on April 9 received U.S. bankruptcy court approval to sell its Drake’s snack cake brand to McKee Foods Corp. for $27.5 million and four of its northwest regional bread brands to United States Bakery for $30.9 million. The transaction includes Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands, as well as four baking plants and 14 depots.
“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, chairman and chief executive officer for Hostess Brands. “We now turn our attention to selling remaining miscellaneous assets and completing the liquidation.”
Judge Robert Drain, who approved the transactions, previously okayed the $410 million sale of most of Hostess’ snack cake business to Apollo Global Management, L.L.C. and Metropolous & Co., the $360 million sale of most of the company’s bread business to Flower Foods, Inc., and the $31 million sale of the Beefsteak bread brand to Grupo Bimbo, S.A.B. de C.V.
The five transactions total approximately $860 million in proceeds.