Thomas H. Lee in the lead to buy Two-Bite Brownies owner -sources

By Lauren Hirsch and Greg Roumeliotis
April 18 (Reuters) - Private equity firm Thomas H. Lee
Partners LP is in advanced talks to acquire Give and Go Prepared
Foods Corp, a Canadian maker of thaw-and-serve sweet baked goods
such as Two-Bite Brownies, according to people familiar with the
matter.
The potential deal illustrates how cash flow-rich companies
producing high-calorie confectionaries are still popular with
some investment firms, despite the consumer industry's broad
move toward healthy eating.
"The consumer today has a split personality. They are
increasingly focused on health and wellness, but equally love to
splurge on quality indulgences," said Michael Dart, a private
equity partner at consulting firm A.T. Kearney who is not
involved in the Give and Go Prepared Foods sale process.
OMERS Private Equity, the buyout arm of the Ontario
Municipal Employees Retirement System which owns Give and Go
Prepared Foods, has granted Thomas H. Lee exclusivity in its
negotiations in order to reach a deal, the people said on
Monday.
There is no certainty that Thomas H. Lee will successfully
conclude its negotiations, the people said. The price Thomas H.
Lee was offering could not be learned, but the sources said it
was lower than the $800 million that OMERS was previously
seeking.
Twinkies maker Hostess Brands LLC had also participated in
the auction for Give and Go Prepared Foods, Reuters previously
reported.
The sources asked not to be identified because the
negotiations are confidential. Thomas H. Lee and Give and Go
Prepared Foods declined to comment, while Hostess did not
immediately respond to a request for comment.
In addition to Two-Bite miniature baked treats, Give and Go
Prepared Foods also sells Kimberly's Bakeshoppe cupcakes. OMERS
bought Give and Go Prepared Foods from private equity firm
Kilmer Capital Partners in 2007.