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.