MILWAUKEE, WIS. — National Baking Co., better known as National Bakery & Deli, has reached an agreement to acquire Oak Creek, Wis.-based Melody Cookies. Financial terms of the transaction were not disclosed.

National Baking’s owners Jeff Callen and Bryant Krauss said Melody Cookies offers “a tremendous opportunity” to add to the company’s existing business offerings, especially wholesale cookies. The acquisition is expected to increase sales and production “to a much higher level,” the company said.

Melody Cookies, Inc. was established in 1968 and operates a facility in Oak Creek that has more than 15,000 square feet of production space. Judy and Milt Baggenstoss, owners since 1988, are planning to retire.

“I want the company to be as good for National Baking Co. as it was for us all of these years,” Ms. Baggenstoss said.