USA: Sara Lee Sells Part of Operation
The sale, which also includes a supply agreement between the Dutch firm Royal Ahold and Sara Lee's U.S. food and beverage manufacturing operations, is expected to close by the end of October, Chicago-based Sara Lee announced Wednesday.
"With the direct sale of PYA/Monarch to Ahold, Sara Lee obtains cash now, eliminates market uncertainty and secures a multiyear supply contract, creating significant value for Sara Lee shareholders," said C. Steven McMillan, chief executive officer of Sara Lee Corporation.
The sale of PYA/Monarch is part of a plan to narrow Sara Lee's focus on three product areas in which the company holds strong positions -- food and beverage, intimates and underwear, and household products. The reshaping plan, which Sara Lee announced in May, also included plans to split off Coach leather goods, and the divestitures of Champion athletic wear and the International Fabrics division of Courtaulds, businesses that did not fit within the company's renewed focus.
Sara Lee had $20 billion in sales in more than 140 countries last year. Its food operations have been struggling, in part due to falling bakery sales and lingering fallout from a December 1998 packaged meats recall.
Other well-known Sara Lee brands include Ball Park hot dogs, Hillshire Farm sausages, Sara Lee cakes, Kiwi shoe polish, Endust furniture spray and L'Eggs hosiery.
On Wednesday, shares of Sara Lee were up 12.5 cents to close at $18.75 on the New York Stock Exchange, where U.S. shares of Ahold were up 37.5 cents to close at $29.063.
Dutch retailer Ahold has reported sales and operating income little changed in the first quarter of 2005, but net income was sharply down because of a one time gain in the first quarter last year....
Dutch retailer Ahold has announced today (Tuesday) that its chief financial officer Hannu Ryöppönen is to leave the company....
Dutch retailer Ahold today (Wednesday) announced that it had signed a new €2bn (US$2.5bn) credit facility with a syndicate of fifteen banks. ...
Dutch retail giant Ahold has said its net sales declined 1.0% to €13.0bn (US$16.5bn) for the first quarter of 2005....
Supermarket company Giant Food, a subsidiary of Dutch retailer Royal Ahold's US arm Ahold USA, has announced restructuring plans for the remainder of 2005 and 2006....
Dutch retailer Ahold has today (Thursday) announced a deal to sell the 198 convenience stores of its US subsidiary Tops Markets to WFI Acquisition, Inc., a corporation formed by Nanco Enterprises, In...
US food and consumer goods giant Sara Lee has announced a rise in net sales in the third quarter ended 2 April 2005 to $4.8bn from $4.7bn in the same period last year, but net income was well down....
Retail supply chain exchanges GlobalNetXchange and the WorldWide Retail Exchange today (Monday) announced that they have agreed to merge....
- Analysis: Tyson's shrewd investment in Beyond Meat
- Nestle India grows with global, digital innovation
- Thailand: convenience to continue to thrive
- Focus: Thai demographics drive health categories
- The promise of fledgling Czech gluten-free market
- Mars launches Maltesers in the US
- Bel takes majority stake in MOM Group
- Campbell backs US nutrition start-up Habit
- Nestle's Buitoni to remove GMOs
- Unilever in continuing price spat with Musgrave
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Packaged Food: Quarterly Statement Q3 2016
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Constellation Brands, Inc. (STZ) - Financial and Strategic SWOT Analysis Review