Sterling Foods, a developer and producer of specialty bakery products, has mandated Harris Williams to explore a sale, four sources familiar with the situation said.

The sale process has not launched yet, two of the sources said, adding that it is expected to kick off in the near-term. Financial sponsors are expected to show interest in the business, they added.

The San Antonio, Texas-based baking goods company generates around USD 30m in EBITDA, each of the sources said. In the event a deal is struck, Sterling is likely to fetch a 7-8x EBITDA multiple, two of the sources said.

Cotton Creek Capital acquired Sterling in 2016 for an undisclosed amount. The investment by Cotton Creek was made in partnership with Sterling’s CEO John D. Likovich.

In an example of a recent deal in the baking space, Platinum Equity and Butterfly Equity acquired Rise Baking for undisclosed terms. This news service first reported in August that Platinum and Butterfly were pursuing Rise in the final stage of the sale process. The business was being marketed at EBITDA of USD 220m. Rise was advised by Morgan Stanley as lead financial advisor, in addition to Harris Williams. Houlihan Lokey and Stifel are serving as financial advisors to Platinum Equity and Butterfly, and Bank of America Securities is providing financing for the acquisition.

Founded in 1971, Sterling is a supplier of shelf-stable baked goods and gourmet-quality items to the food industry. Sterling’s products include a wide variety of specialty and gourmet baked products such as cakes, croissants, bagels, muffins, scones, and various specialty dessert items. Sterling is the largest supplier of shelf-stable bakery products to the US military, according to a press release.

Sterling Foods, Cotton Creek and Harris Williams did not respond to requests for comment.