Recently, McCain Foods announced its frozen dessert and baked goods brand Sara Lee will be put up for sale. McCain has hired Rothschild Australia’s investment bankers to auction the sweet treats maker, and the bankers have been quick to target domestic private equity outfits and potential trade buyers.
According to Australian Financial Review, Sara Lee has been pitched to potential buyers as a pandemic success story that had seen its sales boosted due to strong trading in recent months and changing consumer habits. The dessert brand’s strong trading through COVID-19 saw it post $96 million sales in the 2020 financial year and more than $15 million in earnings before interest, tax, depreciation, and amortization.
Rothschild’s bankers told interested parties that Sara Lee was the owner of the one of the “largest bakery and dessert [facilities] in Australia.” The news source stated Rothschild has called for indicative bids by the end of this month.
Sara Lee’s facility was said to have a site replacement value of more than $160 million and was operating at 50 percent utilization, leaving room to significantly increase production if required.
For the latest updates on how this deal lands, keep checking back to Deli Market News.