Sara Lee Corp has agreed to sell its North American dough business to Ralcorp Holdings for around $545 million.
The business had net sales of more than $300 million in the year ended July 2010.
Ralcorp’s CEO said the deal will enable the company to be a private leader in the $1.8 billion refrigerated dough category.
The business, which employs 700 people mainly in Texas and Georgia, will operate as part of the Ralcorp Frozen Bakery Products division after the close of the transaction.
“The sale of our North American refrigerated dough business to Ralcorp is another step forward for Sara Lee as we continue to prepare for our separation into two publicly-traded companies,” said Marcel Smits, chief executive officer, Sara Lee Corp.
“It will better enable our North American business to focus on its branded meats and frozen desserts products and establish a platform for a strong and independent future.”
