Sale Of Last Of Core Assets Of Texas-Based Hostess Approved

(April 9, 2013)--Hostess Brands Inc. won approval Tuesday to sell off the last of its major cake and bread brands, bringing the total proceeds from its liquidation to about $860 million.

A U.S. Bankruptcy Court judge in New York approved the two deals Tuesday, a representative of Hostess said.

McKee Foods Corp., the maker of Little Debbie snack cakes, will buy the Drake's business for $27.5 million, gaining Devil Dogs, Ring Dings, Yankee Doodles and other products.

United States Bakery Inc. will buy Sweetheart, Eddy's, Standish Farms and Grandma Emilie's bread brand, plus four bakeries and 14 depots for $30.9 million.

The two buyers were the lead bidders for the purchases.

Irving-based Hostess filed for Chapter 11 protection in January 2012 after years of turmoil.

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