Sara Lee completes North American Fresh Bakery business sale

American consumer goods company Sara Lee has completed the sale of its North American Fresh Bakery business to Mexico-based Grupo Bimbo for $709m, which includes debt assumption and employee-related commitments.

Last month, Grupo Bimbo received approval from the US department of Justice to acquire Sara Lee’s North American Fresh Bakery business.

However, the agreement with DOJ requires Grupo Bimbo to sell certain brands and assets in Omaha, Kansas City, Oklahoma City and central Pennsylvania.

Grupo Bimbo will also have to sell some assets and perpetual rights to the Sara Lee and Earthgrains brands for products such as fresh bread, buns and rolls in California.

Following the acquisition, Grupo Bimbo gains the rights to sell Sara Lee-branded fresh baked goods across the globe, with the exception of Australia and New Zealand, while Sara Lee will retain the rights to sell its frozen desserts and meat products.

The deal provides Grupo Bimbo with access to 41 facilities in the US and about 4,800 bakery distribution routes, along with a group of regional bakery brands including Grandma Sycamore’s, Heiner’s and Rainbo.