USA: DBRS comments on Sara Lee's purchase of Earthgrains
The Sara Lee Corp. ("Sara Lee" or "the Company"), one of the largest global branded consumer products companies, has announced plans to purchase the Earthgrains Company for cash considerations totalling $2.8 billion, including $978 million of assumed debt. This acquisition should have several positive results: (1) It is expected to quadruple Sara Lee's bakery sales to more than $3.4 billion as they acquire the second-largest American bread company. Sara Lee's Food and Beverages division will now provide more than $10 billion (near 50%) of Sara Lee's total revenues. (2) Earthgrains brings many successful brands that can be leveraged into the Sara Lee banner. (3) Earthgrains brings Sara Lee a strong direct-store distribution (DSD) system with a network covering 34 states, and more than 50% of the American population. (4) The Earthgrains purchase bolsters Sara Lee's European presence with strong brands in France and Spain. (5) Earthgrains' strong presence in refrigerated dough (40% of revenues) will give Sara Lee an entry into this market.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-food gives you the widest food market coverage.
Paid just-food members have unlimited access to all our exclusive content - including 16 years of archives.
I am so confident you will love complete access to our content that today I can offer you 30 days access for $1.
It’s our best ever membership offer – just for you.
Dean Best, editor of just-food
- It won't just be Unilever to push for Brexit hikes
- Price an underlying tension across European FMCG
- Danone's Q3 sales - what the analysts say
- Interview: UK trade body on Brexit's policy impact
- Interview: UK trade body on the impact of Brexit
- Nestle lowers outlook on "softer environment"
- UK announces "action plan" to drive food exports
- Farmers' groups slam Danone over non-GMO stance
- Kraft Heinz: Innovation more important than ever
- CP Foods invests in UK foodservice firm Foodfellas
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Packaged Food: Quarterly Statement Q3 2016
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review