Switzerland-based food firm Aryzta AG has entered into a definitive agreement to shed its business-to-business (B2B) frozen baked goods business in the US and Canada, Aryzta North America (ANA), to private investment company Lindsey Goldberg LLC for $850 million in cash, the parties announced in separate releases.

ANA manufactures more than 1,5000 products – including breads, sweet and savory baked goods, and snacks – at 15 production plants across the US and Canada. Otis Spunkmeyer, La Brea Bakery, and Oakrun Farm Bakery and its other brands are sold in foodservice, quick-service restaurant, and retail markets.

“Today’s transaction delivers significant debt reduction and balance sheet strength. It now allows us to focus on delivering further operational improvements and returning to organic growth,” Aryzta chairman and interim CEO Urs Jordi said in a statement. “The agreed price reflects well on the underlying quality of the North American businesses, its assets, the significant recovery in performance achieved by the team and bodes well for its future performance prospects under its new owners.”

The companies anticipate that the transaction will close by the end of Aryzta’s 2021 financial year pending the completion of customary closing conditions.

“Lindsey Goldberg is renowned for its collaborative approach in partnering with management teams to build great businesses. The firm’s extensive industry experience, network of relationships, and broad operational expertise position us to maintain the highest standards for food safety and sustainability and accelerate our innovation and future growth trajectory,” said Tyson Yu, chief executive officer of ANA, in the investment firm’s release.