Interstate Bakeries to Acquire Drake’s

Interstate Bakeries Corp., the nation’s largest wholesale baking company, agreed to buy Drake’s bakery, adding the maker of Devil Dogs and Yankee Doodles snack cakes to a lineup that includes Hostess Twinkies and Wonder Bread. Terms of the all-cash transaction with Drake’s owner, Culinar Inc., a closely held Canadian company, weren’t disclosed. Drake’s, with a bakery in Wayne, N.J., has annual sales of $115 million, mostly in the Northeastern U.S. This is the third purchase Interstate Bakeries has made in the last year, as large baking companies are consolidating by buying smaller bakers, extending the reach of their products, adding brands and cutting costs. Kansas City, Mo.-based Interstate Bakeries said the purchase will be completed within 90 days. Interstate Bakeries shares rose 63 cents to close at $32.44 on the New York Stock Exchange. They have risen 14% in the last year.