Divestiture • Food

Kohlberg & Company and Entrepreneurial Equity Partners Acquire Sara Lee Frozen Bakery

On June 1, 2018, private equity firms Kohlberg & Company and Entrepreneurial Equity Partners acquired food company Sara Lee Frozen Bakery from Tyson Foods

Acquisition Context
  • This is Kohlberg & Company’s 5th and Entrepreneurial Equity Partners’ 1st transaction in the Food sector.
  • This is Kohlberg & Company’s 61st and Entrepreneurial Equity Partners’ 1st transaction in the United States.
  • This is Kohlberg & Company’s 3rd and Entrepreneurial Equity Partners’ 1st transaction in Illinois.

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M&A Deal Summary

Date June 1, 2018
Target Sara Lee Frozen Bakery
Sector Food
Buyer(s) Kohlberg & Company
Entrepreneurial Equity Partners
Sellers(s) Tyson Foods
Deal Type Divestiture

Target Company

Sara Lee Frozen Bakery

Oakbrook Terrace, Illinois, United States
Sara Lee Frozen Bakery is a maker of frozen bakery and dessert products. Sara Lee Frozen Bakery maintains a comprehensive product portfolio, including pies, cakes, cheesecake, pound cake, and muffins, sold under brands such as Sara Lee®, Van’s®, Chef Pierre®, and Bistro Collection®. Sara Lee Frozen Bakery was founded in 2018 and is based in Oakbrook Terrace, Illinois.
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Buyers Overview 2

Buyer

Kohlberg & Company

Mount Kisco, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 11.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Kohlberg & Company is a private equity firm which acquires middle-market companies with consistent cash flow, and underperforming companies with operational deficiencies. Kohlberg looks to commit $100 to $500 million of equity capital in opportunities valued from $200 million to $2 billion. Kohlberg generally looks for opportunities in the manufacturing and service sectors, however the Firm will also selectively consider businesses in food and healthcare. Kohlberg tends not to consider technology or communications companies. Kohlberg & Company was formed in 1987 and has offices in Mt. Kisco, New York.


Deal Context for Buyer #
Overall 62 of 82
Sector: Food 5 of 6
Type: Divestiture 10 of 11
State: Illinois 3 of 4
Country: United States 61 of 81
Year: 2018 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-05-14 Senneca Holdings

Cincinnati, Ohio, United States

Senneca Holdings is a manufacturer and distributor of customized doors, including traffic, corrosion resistant, PVC, strip, cold storage, fire and sliding doors. Senneca offers superior design and engineering processes, and supports the development of green product innovations. Senneca Holdings’ family of brands includes Chase, Chem-Pruf, ColdGuard, Econo Max, Eliason, Fib-R-Dor, Saino, and Simon. Senneca Holdings was founded in 1932 and is based in Cincinnati, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-01-24 Osmose

Peachtree City, Georgia, United States

Osmose is a provider of critical inspection, maintenance, and restoration services for utility and telecom infrastructure in the U.S. Osmose was founded in 1934 and is based in Peachtree City, Georgia.

Sell -
DESCRIPTION

Entrepreneurial Equity Partners is a private equity firm focused on opportunities in the food sector. Specific areas of interest include food/beverage brands, private label/contract manufacturing, foodservice, and consumer packaged goods. The Firm prefers control situations in businesses with minimum revenues of $50 million where it can commit at least $25 million of equity capital. Entrepreneurial Equity Partners is headquartered in Chicago, Illinois.


Deal Context for Buyer #
Overall 1 of 12
Sector: Food 1 of 10
Type: Divestiture 1 of 1
State: Illinois 1 of 2
Country: United States 1 of 10
Year: 2018 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-09-17 Daniele

Pascoag, Rhode Island, United States

Daniele produces specialty Italian charcuterie and deli meats, including prosciutto, salame, and snack packs. The company sells to hundreds of club, mass, and grocery customers under the Daniele and Del Duca brands and offers private label products for retailers. Daniele was founded in 1945 and based in Mapleville, Rhode Island.

Buy -

Seller Profile 1

SELLER

Tyson Foods

Springdale, Arkansas, United States

Category Company
Founded 1935
Sector Food
Employees138,000
Revenue 53.3B USD (2024)
DESCRIPTION

Tyson Foods produces, distributes, and markets chicken, beef, pork, prepared foods, and related allied products worldwide. Tyson Foods operates a fully vertically integrated poultry production process. The Company's integrated operations consist of breeding stock, contract growers, feed production, processing, further-processing, marketing and transportation of chicken and related allied products, including animal and pet food ingredients. Tyson also processes live fed cattle and hogs and fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, case ready beef and pork and fully-cooked meats. Finally, Tyson produces a wide range of fresh, value-added, frozen and refrigerated food products. Tyson Foods was founded in 1935 and is based in Springdale, Arkansas.


Deal Context for Seller #
Overall 5 of 9
Sector: Food 3 of 7
Type: Divestiture 3 of 7
State: Illinois 1 of 1
Country: United States 4 of 7
Year: 2018 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-05-15 American Proteins

Cumming, Georgia, United States

American Proteins, Inc. is one of the largest recyclers of poultry products in the world, you can’t find a more experienced, committed and innovative leader and environmental steward than American Proteins. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 122,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it.

Buy $850M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-06-04 MBA Poultry

Waverly, Nebraska, United States

Tecumseh Poultry LLC produces air-chilled, fresh chicken, as well as deli-style chicken and a variety of chicken sausages. The air-chilling process involves using cold air to cool chicken during processing, while the most common method used by the U.S. chicken industry is water-chilling. Both methods are monitored by USDA inspectors and are considered safe.

Buy -