Hostess Brands Inc. won approval to sell its Drake’s snack-cake brands to McKee Foods Corp., makers of Little Debbie cakes, Bloomberg News reported today. Bankruptcy Judge Robert Drain yesterday approved the sale to McKee, which made the only qualified bid for the brands. McKee will pay $27.5 million for Drake’s products including Devil Dogs, Ring Dings, Yodels, Yankee Doodles, Sunny Doodles, Funny Bones and Drake’s Coffee Cake. Judge Drain also approved the sale of certain bread brands to United States Bakery. The company will pay $30.9 million for the Sweetheart, Eddy’s, Standish Farms and Grandma Emilie’s bread brands, four bakeries and 14 depots, plus certain equipment.
