CHATTANOOGA TN. — FourBridges Capital Advisors, a leading middle-market investment banking firm that helps business owners and strategic buyers execute acquisitions, announced today that McKee Foods Corporation has acquired the Drake’s® snack cake brands from Hostess Brands, Inc. The transaction was valued at $27.5 million. FourBridges acted as financial advisor to McKee Foods in connection with the acquisition.

Under the terms of the agreement, McKee Foods will acquire the Drake’s® brand portfolio along with certain related equipment. Drake’s® products include iconic snack cakes such as Ring Dings®, Yodels®, Devil Dogs®, Yankee Doodles®, Sunny Doodles®, and Drake’s® Coffee Cakes—brands with a loyal consumer following and a heritage dating back more than a century.

Founded in 1934 by O.D. and Ruth McKee, McKee Foods is a family-owned bakery company headquartered in Collegedale, Tennessee. The company is best known for its Little Debbie® brand, introduced in 1960 and named after the founders’ granddaughter. Today, McKee Foods produces more than 90 varieties of Little Debbie® snacks and 32 varieties of Sunbelt Bakery® snacks and cereals, sold throughout the United States, Canada, and Puerto Rico.

“We know that Drake’s cakes are unique baked goods with a passionate and loyal following,” said Mike McKee, President and Chief Executive Officer of McKee Foods. “As a family-owned bakery ourselves, we feel a deep connection to Drake’s history and heritage. We have generations of experience in baking, and we look forward to producing Drake’s cakes with the same commitment to quality, taste, and the memories these products represent for so many consumers.”

With annual sales of approximately $1.1 billion, McKee Foods operates production facilities in Collegedale, Tennessee; Gentry, Arkansas; and Stuarts Draft, Virginia, along with a warehouse and distribution center in Kingman, Arizona. The company also owns subsidiaries including Blue Planet Foods and Fieldstone Bakery, which serve retail and institutional foodservice markets.

“We were pleased to support McKee Foods on a transaction that aligns so well with the company’s values, operating strengths, and long-term vision,” said Chris Rowe of FourBridges Capital Advisors. “Drake’s is a heritage brand with deep consumer loyalty, and McKee Foods is uniquely positioned to steward and grow these iconic products while honoring their legacy.”

The acquisition represents a strategic expansion of McKee Foods’ branded snack portfolio and reinforces the company’s commitment to family ownership, operational excellence, and long-term brand stewardship.

About Drake’s®
Founded more than 125 years ago, Drake’s® is a historic American snack cake brand known for its classic products, including Ring Dings®, Yodels®, and Devil Dogs®. The brand has earned a loyal following through generations of consumers.

About McKee Foods
McKee Foods Corporation is a family-owned and operated bakery company headquartered in Collegedale, Tennessee. The company produces and markets Little Debbie®, Sunbelt Bakery®, and other branded snack products sold throughout North America. McKee Foods is known for its long-term focus, employee-centered culture, and commitment to quality.

About FourBridges Capital Advisors
FourBridges Capital Advisors is a middle-market investment banking firm specializing in mergers and acquisitions, capital raises, and strategic advisory services. Based in Chattanooga, Tennessee, FourBridges partners with business owners, family enterprises, and strategic acquirers to deliver thoughtful advice, strong outcomes, and successful transactions.