Hostess Brands Inc. has agreed to sell its Superior Cake Products Inc. in-store bakery business to Sara Lee Frozen Bakery for $65 million in cash, subject to post-closing adjustments.
This would be the first acquisition for year-old Sara Lee Frozen Bakery. The transaction is expected to close during the third quarter.
“This acquisition accelerates Sara Lee Frozen Bakery’s strategic goal of expanding our presence in the high-growth in-store bakery category," said Craig Bahner, CEO of Sara Lee Frozen Bakery.
Superior makes eclairs, madeleines, Brownie Bites, Black & White Cookies and other offerings under the “Superior on Main” brand. Hostess acquired Superior for $51 million in 2016, and grew the business from $33 million of net revenue to approximately $43 million of net revenue and $7 million of earnings for the 12 months ended April 30.
Private equity firm Kohlberg & Co. resurrected the Sara Lee name when it acquired the frozen bakery business from Tyson in mid-2018. 110-year-old Sara Lee changed its name to Hillshire Brands in 2012 after a series of acquisitions and went with that company in 2014 to Tyson Foods, which was only interested in the former's meat (Hillshire) and breakfast (Jimmy Dean) product lines.
Sara Lee just dedicated an R&D center in its Oakbrook Terrace, Ill., headquarters in June.