Blog

Hostess Pacts To Sell Superior In-Store Bakery Line To Sara Lee Unit

KANSAS CITY, MO -- Hostess Brands Inc. has entered into a definitive agreement 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. The transaction is expected to close during the third quarter, subject to customary closing conditions. Hostess plans to use the net proceeds from the transaction to pursue a range of potential strategic options, including reinvesting in its business, de-leveraging its balanc...

August 4, 2019 by Tim Sanford

KANSAS CITY, MO -- Hostess Brands Inc. has entered into a definitive agreement 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. The transaction is expected to close during the third quarter, subject to customary closing conditions.

Hostess plans to use the net proceeds from the transaction to pursue a range of potential strategic options, including reinvesting in its business, de-leveraging its balance sheet and pursuing potential strategic acquisitions.

"Superior has been a high-performing business, and we believe that it will continue to thrive in Sara Lee Frozen Bakery's portfolio as we focus our future investments on areas of our business that better leverage our core competencies and pillars for growth," said Hostess president and chief executive Andy Callahan. "I would like to thank the Superior team for their contributions to the company and wish them continued success as they move forward under new ownership."

Superior has been baking quality products for more than a century, producing a range of sweet goods including éclairs, madeleines, Brownie Bites, Black and White Cookies and other offerings made under the "Superior on Main" brand name. Hostess acquired Superior in 2016 for approximately $51 million.

"This acquisition accelerates Sara Lee Frozen Bakery's strategic goal of expanding our presence in the high-growth in-store bakery category," said Sara Lee Frozen Bakery chief executive Craig Bahner. "Along with our new colleagues at Superior, we will continue to innovate and deliver irresistible foods that meet retail customer and consumer demands for premium, 'worth it' indulgences."

About Tim Sanford

---

Tim Sanford is the retired, long-time editor of Vending Times.

Connect with Tim: