Sara Lee, the US food maker looking to split into two separate companies, said today (5 May) it was looking to buy “premium” meats firm Aidells Sausage Co. – but admitted it was mulling its options over two more of its own units.
The company, which also announced its third-quarter results today, said it had agreed to buy Aidells for US$87m. The deal, Sara Lee, would expand its presence in the organic and natural meat categories in North America.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
However, Sara Lee also said it was “evaluating strategic options” over two divisions – its international bakery business and its North American refrigerated dough unit.
Sales from Sara Lee’s international bakery divison fell 7% in the company’s third quarter, which runs to 2 April, due to a weak performance from its Spanish fresh bakery unit.
Underlying operating income from the business, excluding costs that hit last year’s third quarter, was down $6m on last year.
Sara Lee’s plans to split into two publicly-traded companies were announced in January. One company, which will retain the Sara Lee name, will be spun off and focus on the group’s North American grocery retail and foodservice arms. The company, which would have had sales of US$4.1bn in Sara Lee’s last fiscal year, will sell brands including Jimmy Dean meats and Ball Park hot dogs.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe second as yet unnamed firm will consist of Sara Lee’s North American and international beverage operations and its international bakery arm. This business, which includes brands like Douwe Egberts coffee and Bimbo bread, would have reported sales of $4.6bn in fiscal 2009/10.
Sara Lee chairman Jan Bennink said today that the company was “making great progress” with creating the two companies.
“We are focused on preparing both the coffee company and the meat company for strong and vibrant futures,” Bennink said.
“Looking ahead, in North America we are pleased to announce that we signed an agreement to acquire Aidells Sausage Company. Aidells premium, high-potential products will enhance our North American meat portfolio. Also within North America, we will be evaluating our strategic options regarding the North American refrigerated dough business.
“Within the coffee business, we are working on the strategic role and options relating to our international bakery segment. These initial steps are part of the preparatory phase which will give each company the best platform for a strong and independent future.”
