Hillshire Brands Sells Australian Business24 December 2012
AUSTRALIA – Hillshire Brands, the meat and food processing spin off from Sara Lee has signed an agreement to sell its Australian subsidiary Kitchens of Sara Lee Pty Ltd to a subsidiary of McCain Foods Limited (McCain Foods Aust Pty Ltd), an international leader in the frozen food industry.
Hillshire reports the Kitchens of Sara Lee business as the “Australian Bakery” business. Also included in the transaction are license rights to certain intellectual property used in the Australian Bakery business in the Asia-Pacific region.
The total amount of consideration payable in connection with the transaction is A$82 million in cash (approximately $85 million based on recent exchange rates), subject to adjustment. The transaction is expected to close in the first half of calendar year 2013, and is subject to customary closing conditions and regulatory clearance.
“The Sara Lee Australian bakery operation is an excellent business that will complement McCain's strengths,” said Sean Connolly, chief executive officer of Hillshire Brands.
“The sale of this business enables Hillshire Brands to focus on driving growth and innovation in our retail and foodservice segments in North America.”
Hillshire Brands’ Australian Bakery business has approximately 500 employees and one primary manufacturing facility in Australia. The business produces and sells a variety of bakery and other food products to retail and foodservice customers in Australia and other parts of the Pacific Rim under brands including the Sara Lee brand name. No other Sara Lee branded fresh bakery products are affected by this transaction.
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