McCain Foods has acquired Sara Lee's bakery business in Australia and New Zealand for $82 million from US-based Hillshire Brands, providing it with an entry into the frozen desserts category.

The acquisition includes Sara Lee's manufacturing facility at Lisarow, New South Wales, as well as license rights to the Sara Lee brand, and certain intellectual property used in the Australian bakery business in the Asia-Pacific region.

McCain Foods Australia/New Zealand managing director Steve Yung said Sara Lee is a great addition to its family of frozen foods and would provide a platform for growth.

“We are now focused on a smooth integration of the new business without disruption to our consumers and customers,” Yung said. 

The bakery business, also known as Kitchens of Sara Lee Australia, is a leading Australian and New Zealand frozen food company that manufactures, sells and distributes a range of Sara Lee branded products including frozen desserts, super premium ice cream, pastries, frozen savoury meals and frozen fruit categories.

McCain Australia/New Zealand, based in Ballarat, is a subsidiary of McCain Foods that specialises in frozen potato products, vegetables, dinners, pizza and frozen fruit, for both the retail and food-service sectors. The company operates eight production facilities, which are located on five sites throughout Australia and New Zealand.

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