Sara Lee Corp. has signed an agreement to sell its North American refrigerated dough business to Ralcorp Frozen Bakery Products, Inc., a division of Ralcorp Holdings, Inc. for $545 million. The transaction is anticipated to close by the end of calendar year 2011.
In May 2011, Sara Lee Corp. announced that it was evaluating strategic options for this business, which provides a full range of private brand products including basic and specialty biscuits, crescent rolls, pizza and pie crusts and toaster pastries. These products are packaged for and sold to leading food and mass retailers.
“The sale of our North American Refrigerated Dough business to Ralcorp is another step forward for Sara Lee as we continue to prepare for our separation into two publicly-traded companies,” said Marcel Smits, chief executive officer, Sara Lee Corp. in a prepared statement. “It will better enable our North American business to focus on its branded meats and frozen desserts products and establish a platform for a strong and independent future.”
Sara Lee’s North American refrigerated dough business employs approximately 700 people and includes manufacturing facilities in Forest Park, Ga. and Carrollton, Tex. The business generated revenues in excess of $300 million in fiscal 2010.