Sara Lee, bastion of frozen desserts loved by generations, has gone into voluntary administration. FTI Consulting has been appointed administrator.
Originally owned by US based Hillshire Brands, McCain Foods acquired the business for $82 million in an all-cash deal in 2012.
McCain announced it was looking for a buyer in 2020, saying it wanted to focus on its core potato business in retail and food service.
In those eight years it spent more than $40 million upgrading the Sara Lee plant in Lisarow, on the New South Wales Central Coast, including a state-of-the-art pastry line.
In FY20, its sales topped $96 million, and it reported more than $15 million in earnings before interest, tax, depreciation, and amortisation (EBITDA). Baked goods accounted for 31 per cent of sales and ice creams 17 per cent.
New Zealand private equity company South Island Office bought Sara Lee in August 2021 for around $95 million.
It had bought New Zealand bakery business Original Foods Baking Co for $30 million in 2020, signifying the first move by SIO into the food sector.
Vaughan Strawbridge, Kathryn Evans and Joseph Hansell of FTI Consulting have been appointed as Voluntary Administrators
Strawbridge said FTI was expecting a lot of interest in the business and was looking to restructure or sell it while continuing operations.
