Consumer & Retail | Mergers & Acquisitions

Hostess sells Superior on Main to Sara Lee

  • TM Capital served as exclusive financial advisor to Hostess Brands, Inc. (“Hostess Brands”) in its divestiture of Hostess Superior Cake Products, Inc. (“Superior”) to Sara Lee Frozen Bakery, LLC (“Sara Lee”) for $65 million
  • Superior is a leading producer of distinctive, indulgent sweet baked goods including iced cookies, brownies, madeleines and éclairs, which are sold in the rapidly growing in-store bakery market within grocery chains, club stores and superstores nationwide
  • Hostess Brands (NASDAQ: TWNK), with a market capitalization of over $1.8 billion, is one of the largest packaged food companies focused on the sweet baked goods market in the U.S.
  • Sara Lee, a portfolio company of Kohlberg & Company, LLC, is a leading provider of frozen bakery and dessert products marketed under premier brands including Sara Lee, Van’s, Chef Pierre and Bistro Collection
  • Sara Lee will leverage Superior to grow its in-store bakery presence and expand its portfolio of premium bakery offerings

 

Read the full press release.

Client Testimonial

“TM Capital has been a long-term trusted advisor in the snacking category. At Hostess we have worked with TM Capital on multiple transactions, both as our advisor and across the table as the seller’s representative – in every case we’ve been impressed by TM’s industry expertise and tireless efforts to achieve an extraordinary outcome. In the sale of our Superior on Main division to Sara Lee, TM drove value by crafting a compelling investment thesis, highlighting Superior’s differentiated capabilities and pre-emptively identifying strategic synergies.  We appreciate TM’s dedication to Hostess and their efforts to deliver maximum shareholder value.”
Michael Cramer, Executive Vice President and Chief Administrative Officer, Hostess