Sara Lee Acquired by Original Foods Baking Co.

The group that recently purchased the fast-growing Original Foods Baking Co. has recently announced it has agreed to acquire iconic Australian desserts and baked goods brand Sara Lee from McCain Foods in Australia and New Zealand.

This announcement from New Zealand’s South Island Office investor group will create and grow the region’s leading frozen bakery good company, as it brings together two great baking companies that specialize in using locally sourced ingredients to bring delicious treats to families in Australia, New Zealand and internationally.

The acquisition creates a strong partnership as both Sara Lee and the Original Foods Baking Co. have a long tradition of supplying Australasia with indulgent baked goods and desserts. The combined product ranges and distribution channels are highly complementary.

As part of its strategy to grow the Sara Lee business, McCain appointed Mark Mackaness as a dedicated general manager in 2019 to build standalone business capability, operating independently from McCain and allowing for a seamless transition of the business.

As part of this acquisition, Mackaness has invested in the business and will be an equity partner and Group CEO, further demonstrating the confidence Sara Lee’s leadership has in the future for the two businesses. Sara Lee’s leadership team will be staying with the business, allowing for continuity for teams, customers and suppliers.

Mackaness said that beyond the certainty and continuity this arrangement provides for stakeholders, the strategy is designed for growth for the two companies.

“Sara Lee is highly complementary to Original Foods Baking Co.,” he said. “Original Foods Baking Co. is already branching out to Australia and beyond with its range of brownies, slices, bites and more. At Sara Lee, we have built an iconic Australian bakery brand, and our quality ice cream, cheesecakes, apple pies, danishes and puddings have been a household favorite in Australia and New Zealand for 50 years. This partnership allows both businesses to gain exposure to new channels and markets as we have different strengths in retail and foodservice in Australia and New Zealand.”

Since 2013, McCain has invested more than AUD40m in Sara Lee’s product innovation and infrastructure to create a successful, well-run business that is prepared for growth and future, so we will look to continue to innovate and maintain our growth journey from day one, a company press release stated.

Mackaness said that under the terms of the sale, all current Lisarow-based Sara Lee employees will remain with the business and they can all participate in the next exciting phase of the Sara Lee story.

“Our customers should experience seamless service throughout this acquisition process, as McCain will continue to provide business process and services support to Sara Lee for a period following the sale, allowing us to plan for the future without disruption for customers and suppliers,” Mackaness said.