(Corrects typographical errors in sixth paragraph regarding
Michael Dart's title)
By Lauren Hirsch
Sept 18 (Reuters) - Give and Go Prepared Foods Corp, a
Canadian maker of thaw-and-serve sweet baked goods such as
Two-Bite Brownies, is exploring a sale it hopes could value it
at around C$550 million ($416 million), according to people
familiar with the matter.
The Toronto based-company's owner, OMERS Private Equity, the
buyout arm of the Ontario Municipal Employees Retirement System,
has held talks with investment banks in recent weeks to appoint
a financial adviser to run an auction or initial public offering
for the company, the people said.
The sources asked not to be identified because the matter is
confidential. Give and Go and OMERS did not respond to requests
for comment.
A sale of Give and Go would seek to capitalize on Americans'
penchant for indulgent baked goods, even as they move toward
health products. Potential buyers include Flowers Foods Inc
FLO.N and Grupo Bimbo BIMBOA.MX , the sources said.
Representatives of Flowers and Grupo Bimbo did not respond
to requests for comment.
"Of the long-term trends consumer have, one is shifting into
health and wellness ... when consumers splurge, they're really
getting into premium indulgence" Michael Dart, a partner at AT
Kearney's private equity practice, said.
Give and Go's brands include Two-Bite miniature baked treats
and Kimberly's Bakeshoppe cupcakes. The Two-Bite brand, best
known for its brownies, also includes macaroons, croissants and
coffee cakes.
Give and Go provides private-label products to retailers
across Canada, the United States, Mexico, Europe, Australia and
Japan, according to its website.
OMERS bought Give and Go from private equity firm Kilmer
Capital Partners in 2007.
Mexico City-based Grupo Bimbo has bought a string of
Canadian bakery companies recently, including Toronto-based
Italian Home Bakery, Canada Bread for C$1.83 billion and Saputo
Bakery for C$120 million. Flowers Foods, based in Thomasville,
Georgia, this week completed its acquisition of Dave's Killer
Bread from Goode Partners Llc for about $275 million.
(C$1=$1.32)