Schwan Food Company acquires part of Mrs. Smith's Bakeries

MARSHALL, MINNESOTA - The Schwan Food Company said Thursday it will buy the frozen dessert business of Mrs. Smith&#39;s Bakeries from Flowers Foods for about $240 million in cash. <br> <br> The deal includes the Mrs. Smith&#39;s, Pet-Ritz and related frozen dessert brands; Mrs. Smith&#39;s manufacturing facilities in Stillwell, Oklahoma, and Spartanburg, South Carolina; Mrs. Smith&#39;s facilities in Suwanee, Georgia; foil press equipment in Pottstown, Pennsylvania and Mrs. Smith&#39;s frozen dessert inventories. <br> <br> Flowers will keep the frozen bread and roll businesses of Mrs. Smith&#39;s, and said it will complement its core fresh bread business. <br> <br> Mrs. Smith&#39;s frozen desert business employs 1,087 people. It produces a broad line of frozen deserts, including pies, cakes, cobblers and pie crusts for retail grocery, foodservice and in-store bakery sales. The portion Schwan is buying has about $350 million in annual sales. <br> <br> The sale is expected to close in the first quarter, subject to regulatory approval. <br> <br> Marshall-based Schwan, which is privately held, employs 24,000 people across the United States and in Europe, manufacturing and selling frozen foods through home delivery, retail grocery and foodservice channels. <br> <br> Flowers Foods, headquartered in Thomasville, Georgia, operates 33 bakeries making a wide range of products marketed in the Sun Belt and nationwide.