Courtesy of Benzinga.
Sara Lee Corp. (NYSE: SLE) has announced that it has reached an agreement with Grupo Bimbo S.A.B. de C.V. and the U.S. Department of Justice (DOJ) that will allow the parties to complete the sale of Sara Lee’s North American Fresh Bakery business to Grupo Bimbo following approval by a federal judge. The transaction is expected to close on Nov. 5, 2011.
The agreement with the DOJ includes remedies requiring Grupo Bimbo to divest certain brands and assets in the following regions and metropolitan areas – Omaha, Kansas City, Oklahoma City and central Pennsylvania. In addition, Grupo Bimbo will be required to divest certain assets and the perpetual rights to the Sara Lee and Earthgrains brands for fresh bread, buns and rolls in the state of California. As a result of these remedies, the parties have agreed to reduce the purchase price, which includes the assumption of debt, from $959 million to $709 million. As previously agreed, Grupo Bimbo will continue to assume all employee related commitments, including pension obligations.
“We’re very pleased we’ve obtained regulatory approval and can now move toward closing this sale,” said Marcel Smits, chief executive officer of Sara Lee Corp. “The North American Fresh Bakery business is a great fit for Grupo Bimbo, and this transaction allows Sara Lee to aggressively drive growth in our core coffee and meats categories as well as return shareholder value.”
Sara Lee reiterated its intention to declare a $3.00 per share special dividend on the company’s common stock. The exact timing of the dividend payout is still being determined.
