Hostess Brands Inc. said yesterday that its Drake's snack cake business will be acquired by McKee Foods Corp., which had submitted a baseline bid of $27.5 million earlier this year, Reuters reported yesterday. Hostess, the maker of such iconic goods as Drake's, Twinkies and Wonder Bread, is liquidating after filing for bankruptcy last year, its second since 2004. An auction for Drake's was canceled after no other qualified bids were submitted. McKee was the only qualified bidder to step up by Wednesday's deadline, according to a Hostess statement.
