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Sara Lee to Buy Pennsylvania Bakery for $72M

Sara Lee Corp. agreed Jan. 17 to buy Butter-Krust Baking for about $72 million.

Sunbury, Pa.-based Butter-Krust is a privately held, fresh bakery business. It expects 2005 sales to total more than $80 million.

In addition to the Pennsylvania plants and the headquarters office, the acquisition includes 12 distribution depots and about 180 direct-store delivery routes.

Butter-Krust primarily produces white bread and buns and Italian bread at its two plants in Sunbury and Northumberland, Pa. The company markets its products under the Holsum, Butter-Krust Country, Roman Meal and Milano brands in most of Pennsylvania and parts of Maryland, Virginia, West Virginia, New York, New Jersey and Delaware.

Brenda Barnes, chairman and CEO of Sara Lee Corp., said in a statement, "With the acquisition of Butter-Krust Baking, Sara Lee will expand its mid-Atlantic distribution coverage, complementing our recent entry into the OhioValley, to better serve our customers and to reach more than 20 million additional consumers."

The Sara Lee brand has become the largest and fastest-growing brand in the U.S. fresh bakery market, according to Barnes' statement.

Chicago-based Sara Lee Corp. manufactures and markets consumer products. Sara Lee relocated about 200 Bakery Group jobs from Clayton to Chicago last year when the group was reorganized in July under the company's new Food & Beverage and Foodservice divisions. Sara Lee continues to employ about 650 people in St. Louis.

Published January 18, 2006 by the St. Louis Business Journal