Hillshire Brands completes sale of bakery unit Kitchens of Sara Lee

US food company Hillshire Brands has completed the sale of its Australian frozen bakery business, Kitchens of Sara Lee (KOSL), to McCain Foods (Aust) for A$82m ($85m).

The move is part of Hillshire Brands’ strategy to focus on retail and foodservice segments in North America.

KOSL produces a range of bakery and other food products under the Sara Lee brand, including frozen desserts, super premium ice cream, frozen savoury meals, and pastries.

It operates a manufacturing facility in Lisarow, New South Wales, and caters to retail and foodservice customers in Australia and other parts of the Pacific Rim.

In December 2012, McCain Foods, the parent company of McCain Foods (Aust), entered into an agreement with Hillshire Brands to acquire KOSL, as part of its efforts to expand the product range across desserts, meals and snacks.

With the completion of the deal, McCain Foods has now gained control of KOSL’s operations including the manufacturing, marketing, distribution and export of frozen desserts.

It also has gained licensing rights to the Sara Lee trademark for the production of bakery products in Australia.

McCain Foods (Aust) is a producer of frozen potato products, vegetables, dinners, pizza and frozen fruit for both retail and foodservice customers.

Formerly known as Sara Lee Corporation, Hillshire Brands is involved in meat-centric food products and foodservice operations and offers consumer brands such as Jimmy Dean, Hillshire Farm, Ball Park, Aidells, Gallo Salame and State Fair.

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Image: With the completion of deal, McCain Foods has gained control of KOSL’s operations and licensing rights to the Sara Lee trademark for the production of bakery products in Australia. Photo courtesy of McCain Foods.