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McCain Foods to acquire Kitchens of Sara Lee (Australia) from Hillshire Brands

BALLARAT, Australia, Dec. 19, 2012 /CNW/ - McCain Foods (Aust) Pty. Ltd. today announced that it has signed a Share Purchase Agreement to acquire 100% of the shares of the Kitchens of Sara Lee (KOSL) frozen bakery business based in Australia and New Zealand from Hillshire Brands.

The agreement - valued at AUD$82 million (approximately US$85 million) - encompasses KOSL's manufacturing, marketing, distribution and exporting of frozen desserts, as well as licensing rights to the Sara Lee trademark in connection with the bakery business in Australia and other areas within the Pacific Rim.  The transaction is subject to closing conditions and regulatory approvals.

Steve Yung, managing director of McCain Australia/New Zealand said, "Sara Lee will be a great addition to our family of frozen foods, offering our customers an expanded range of products across desserts, meals and snack occasions.  Sara Lee is a recognized and trusted brand that is highly complementary to our business."

KOSL is a leading Australian and New Zealand frozen food company that manufactures, sells and distributes a range of Sara Lee branded products in the frozen desserts, super premium ice cream, pastries, frozen savoury meals and frozen fruit categories.  KOSL produces the majority of its products at a facility in Lisarow, New South Wales and employs approximately 500 people.

About McCain

McCain Australia/New Zealand, based in Ballarat, is a subsidiary of McCain Foods Limited and specializes in frozen potato products, vegetables, dinners, pizza and frozen fruit for both the Retail and Foodservice sectors.  The company operates eight production facilities, located on five sites throughout Australia and New Zealand.

McCain Foods Limited is an international leader in the frozen food industry and the world's largest manufacturer of frozen potato specialities, employing approximately 18,000 people and operating 50 production facilities on six continents.  The company also makes pizzas, appetizers and oven-ready meals.  A privately-owned company based in Canada, McCain generates annual sales in excess of CDN $6 billion. The company's products can be found in restaurants and retail stores in over 160 countries around the world.

SOURCE McCain Foods Limited

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