Sara Lee Acquires Butter-Krust Baking

Sara Lee said the acquisition of Sunbury, Pa.-based Butter-Krust, which had more than $80 million in sales last year, will enable it to expand its mid-Atlantic distribution coverage. The deal also includes 12 distribution depots and about 180 direct-store delivery routes.

Butter-Krust, founded in 1920, produces white bread and buns and Italian bread at its two plants in Sunbury and Northumberland, Pa. It 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.

Sara Lee CEO Brenda Barnes said the company also will use Butter-Krust's relationships throughout the region to further expand the Sara Lee brand of bread.

Sara Lee shares rose 12 cents to $18.72 in midday trading on the New York Stock Exchange. They are down slightly in 2006 after a 22 percent decline last year.