Chicago-headquartered Sara Lee – which is a leader in the frozen bakery and dessert sector – sees the acquisition accelerating its goal in expanding its presence in the high-growth instore bakery category.
Superior has been baking products for more than a century, producing a range of sweet goods including éclairs, madeleines, brownies and cookies under the Superior on Main brand.
Hostess acquired Superior in 2016 for $51m and grew it sales from $33m to approximately $43m for the 12 months ended April 30, 2019.
“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,” said Craig Bahner, CEO of Sara Lee.
The transaction is expected to close during the third quarter, subject to customary closing conditions.
Hostess plans to use the proceeds to pursue a range of strategic options, including reinvesting in its business, paying down debt and pursuing further potential 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,” added Any Callahan, president and CEO of Hostess.
TM Capital acted as financial advisor to Hostess.