CHICAGO — Sara Lee Corporation said Feb. 10 it plans to spin off businesses accounting for about 40 percent of its revenues, including its branded apparel unit, based in Winston-Salem, NC.
The “transformation plan” includes the disposition of its European packaged meats and direct selling businesses, along with its apparel division.
Sara Lee also named a new CEO, Brenda C. Barnes, to lead the major overhaul of the company. She replaces C. Steven McMillan, who will remain chairman until October.
In line with its new organization, the company said it will make some dramatic changes to its portfolio. Last month, Sara Lee announced that it was formally exploring the sale of its $1.8 billion European apparel business.
With its latest announcement, the company also is pursuing the spin-off of the balance of its apparel business, Branded Apparel, Americas/Asia, into an independent, publicly traded company.
“We are confident Branded Apparel has a tremendous future and will flourish in today’s marketplace as an independent, publicly traded company,” said McMillan. “With some of the most powerful brands in the industry ... we believe that spinning off the $4.5 billion apparel business into a stand-alone, Fortune 500 company will be beneficial to Sara Lee shareholders.”
