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Sara Lee sells dough for $545 million

Food and beverage company Sara Lee will sell its North American branded refrigerated dough products to US food giant Ralcorp Holdings.

Sara Lee announced the decision by Ralcorp to buy the concern for about $545 million earlier this month as part of its plan to separate the company operations.

In a statement, Sara Lee said the its Australian frozen desserts business remains under strategic review.

The company also wants to sell of its French refrigerated dough and Spanish bakery businesses, according to chief executive of Sarah Lee Corp Marcel Smits, who said the sale “sale “is another step forward for Sara Lee as we continue to prepare for our separation into two publicly-traded companies.

“It will better enable our North American business to focus on its branded meats and frozen desserts products,” he said.

Its North American refrigerated dough business generates multi-million dollar revenue each year, and in 2010 it made more than $300 million with sales of private label biscuits, crescent rolls, toaster pastries and pizza and pie crusts to retailers.

In May Sara Lee announced it was looking at “strategic options” for its North American refrigerated dough business.

About 700 people are employed at the business which has operations in Forest Park, Georgia and Carrolton, Texas.

A spokesman for Ralcorp told BakeryAndSnacks.com that this represents its “first foray into the refrigerated dough business”.

“We are excited about the addition of the refrigerated dough business to the Ralcorp family of products,” said Kevin J. Hunt, co-CEO and president of Ralcorp.

“This transaction will allow Ralcorp to be a private-brand leader in the $1.8bn refrigerated dough category.”

Sara Lee confirmed the sale of the North American operations and the intentions to divest the Spanish baker and French refrigerated dough business in a media statement yesterday.

“For both, a sales process is underway and numerous bids have been received,” it said.

“These businesses will be reclassified to discontinued operations in the first quarter of fiscal 2012.”

The Ralcorp deal is expected to close by the end of 2011.

Image: Food and Drinks Digital

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