US-based food and beverage group Sara Lee has decided to spin-off its International Coffee and Tea business, rather than spinning off its North American business. At the start of the year, Sra Lee had been planning to spin-off its North American meats and frozen-desserts business.
“This transaction is more than a spin-off of one business segment – we are really separating a global company into two, independent pure-play companies, which adds complexity as well as opportunity,” explains Jan Bennink, executive chairman of Sara Lee. “As we began to get into the details of separating the two businesses, we determined there are greater efficiencies to be gained from spinning off the International Coffee business.”
Sara Lee plans to split into two publicly traded companies in early 2012.
Sara Lee is currently in the process of selling its North American Bakery business to Grupo Bimbo. The transaction is expected to close early in Sara Lee’s 2012 fiscal year.