Hostess picks McKee as buyer for Drake's cakes

Drake's Ring Dings

Credit: Evan-Amos

The maker of Little Debbie snack cakes will be able to make Ring Dings after agreeing to buy the Drake's Bakery line from Irving-based Hostess.

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by CANDICE CHOI / Associated Press

Associated Press

Posted on March 14, 2013 at 2:55 PM

Updated Thursday, Mar 14 at 2:54 PM

NEW YORK (AP) - Hostess is moving forward with the sale of its Drake's cakes to the maker of Little Debbie cakes.

The bankrupt company says it picked McKee Foods as the buyer for the cakes, which include Devil Dogs, Funny Bones and Yodels, after nobody stepped forward to top its offer.

A source who requested anonymity because the sale process is private had said the pair of investment firms picked to buy Twinkies had expressed interest in Drake's as well but that the offer ultimately did not qualify. The auction scheduled for Friday will be canceled as a result according to a filing in bankruptcy court.

Separately, Metropoulos & Co., which is joining Apollo Global Management to buy Twinkies, said it hopes to have the cakes back on shelves by this summer.
 

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