Milwaukee-based Sandwich Bros. of Wisconsin has completed its previously announced sale to Chicago-based food giant Conagra Brands Inc. In a recent SEC filing, Conagra indicated it would pay about $87 million for Sandwich Bros.
Sandwich Bros., a division of Kangaroo Brands Inc., makes frozen breakfast and entrée flatbread pocket sandwiches filled with beef, chicken, sausage and cheese. Kangaroo, which makes pita bread and pita chips, was founded in 1979 by John and George Kashou. It is located in a 55,000-square-foot space at 7620 N. 81st St. In 2012, Kangaroo created the Sandwich Bros. line, frozen breakfast and entrée flatbread sandwiches, which are distributed to grocery stores, club, convenience and mass merchandisers nationally.
Sandwich Bros. will operate as a division of Conagra under the name Sandwich Bros. of Wisconsin LLC, and its products will continue to be manufactured in Milwaukee.
Conagra Brands’ other products include Marie Callender’s, Reddi-wip, Hunt’s, Healthy Choice and Slim Jim. It is one of the largest food companies in North America, with about $8 billion in annual sales.
Conagra previously bought the Kangaroo brand trademark and the pita chip division in 2012. The deal included the company’s pita chip plant at 8222 N. Granville Woods Road on Milwaukee’s northwest side. The company used the Kangaroo name under license with Conagra, and the brand will now be dissolved.
Sandwich Bros., which has about 200 employees, disclosed it had about $60 million in revenue in the 12 months ending in November. The division has helped Kangaroo grow rapidly. Last year, Kangaroo added 70 employees and began searching for a second facility to make room for its growth. There are now about 180 full-time employees in Milwaukee and 75 contract/temporary employees, all of whom Sandwich Bros. is converting to full-time employees, said Salem Kashou, president of the Sandwich Bros. business.
John and George Kashou were the sole owners of Sandwich Bros. The transaction price was not disclosed, but real estate records show the manufacturing facility on North 81st Street and the 2.9 acres of land it is on were sold by Kashou Brothers LLC to Sandwich Bros. of Wisconsin LLC for $3 million on Feb. 5.
There is no room to expand at the existing facility, said Salem Kashou, unless the new owners built upward.
“The plan is to continue improving efficiencies and doing what they can within these walls and then consider all the options for the future for another building or perhaps using whatever capacity they may have within their network of plants,” Kashou said. “Nothing concrete has been discussed.”
