Packaged food company Hostess Brands Inc. has agreed to sell Superior Cake Products, Inc. to Sara Lee Frozen Bakery for $65 million in cash, according to an Aug. 1 release.
Superior is an in-store bakery that was acquired by Hostess in 2016 for about $51 million and produces a number of baked product brands such as Éclairs, Madeleines, Brownie Bites, Black and White Cookies and other offerings made under the Superior on Main brand name.
Hostess plans to use the net proceeds from the sale to reinvest in its business, de-leverage its balance sheet and pursue potential strategic acquisitions.
The transaction is expected to close during the third quarter, subject to customary closing conditions.
TM Capital acted as financial adviser to Hostess.