McCain Foods to acquire Kitchens of Sara Lee from Hillshire Brands

McCain Foods has signed a share purchase agreement to acquire 100% of the shares of the Kitchens of Sara Lee (KOSL) frozen bakery business from Hillshire Brands for $82 million.

The agreement covers KOSL’s manufacturing, marketing, distribution and exporting of frozen desserts, as well as licensing rights to the Sara Lee trademark in connection with the bakery business in Australia and other areas within the Pacific Rim. The transaction is subject to closing conditions and regulatory approvals.

“Sara Lee will be a great addition to our family of frozen foods, offering our customers an expanded range of products across desserts, meals and snack occasions,” said Steve Yung, Managing Director of McCain Australia/New Zealand. “Sara Lee is a recognised and trusted brand that is highly complementary to our business.”

KOSL manufactures, sells and distributes a range of Sara Lee branded products in the frozen desserts, premium ice cream, pastry, frozen savoury meal and frozen fruit categories. The company employs approximately 500 people and produces the majority of its products at its Lisarow facility.