Senior management at Sara Lee will today (28 January) unveil their plans for the US food group as reports claim that the company will not be sold – at least not immediately – and will be divided into two.
Sara Lee executives will broadcast their “strategic initiatives” online at 09:00 CST today, an announcement that will follow months of speculation over the future of the business.
Since last summer, speculation has swirled around the US market that Sara Lee could be sold. Brazilian meat giant JBS and a clutch of private-equity firms have been linked to the business. Rumours have emerged that buy-out giant KKR, JBS and a rival consortium led by private-equity firm Apollo Global Management have all made bids for Sara Lee, while, at the same time the US group’s board is said to have been mulling whether to split the company in two.
According to reports today in the US, Sara Lee’s senior management is pushing ahead with plans to divide the business after informal discussions to sell the company failed to attract offers the board was willing to accept.
The Financial Times said today that neither the Apollo-led group nor JBS, which had been talking to private-equity group Blackstone about a joint bid, had come up with an offer that had won over the Sara Lee board.
However, according to anonymous sources cited by the Wall Street Journal, some suitors for the business could return to the table once the division is made.