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Sara Lee to sell Courtaulds apparel business to PD Enterprise
09 May '06
3 min read
Consumer goods company Sara Lee Corporation has entered into a purchase agreement for the sale of its UK-based Courtaulds apparel business to a group led by PD Enterprise Ltd, a global garment producer.
"The sale of Courtaulds is another step toward transforming Sara Lee into a world-class integrated operating company," said Brenda Barnes, Chairman and CEO, Sara Lee Corporation.
"As we continue to simplify our organization and focus on growing our core food, beverage and household and body care businesses, we are better positioned to drive long-term, sustainable growth for Sara Lee shareholders," Brenda added.
The completion of the transaction is subject to customary conditions and is expected to occur by July 1st 2006, the end of Sara Lee's fiscal year. Sara Lee's interests in three Sri Lankan joint ventures that supply a portion of Courtaulds' inventory were not included in this sale, and may be sold at a later date.
Sara Lee Courtaulds, which manufactures private-label clothing for retailers, generated nearly $560 million in sales in fiscal 2005. PD Enterprise Ltd operates nine facilities that produce more than 120 million garments annually. Its products include bras, underwear, nightwear, swim and beachwear, formalwear and casualwear, jackets and coats, babywear and socks.
The corporation's apparel operations in the UK were classified as held for sale and reported as a discontinued operation in the second quarter of fiscal 2006. Based upon an offer from a prospective buyer at the end of the second quarter of fiscal 2006, the corporation recognized an impairment charge of $1 million to write down the carrying value of the Courtaulds business to zero.
"The sale of Courtaulds is another step toward transforming Sara Lee into a world-class integrated operating company," said Brenda Barnes, Chairman and CEO, Sara Lee Corporation.
"As we continue to simplify our organization and focus on growing our core food, beverage and household and body care businesses, we are better positioned to drive long-term, sustainable growth for Sara Lee shareholders," Brenda added.
The completion of the transaction is subject to customary conditions and is expected to occur by July 1st 2006, the end of Sara Lee's fiscal year. Sara Lee's interests in three Sri Lankan joint ventures that supply a portion of Courtaulds' inventory were not included in this sale, and may be sold at a later date.
Sara Lee Courtaulds, which manufactures private-label clothing for retailers, generated nearly $560 million in sales in fiscal 2005. PD Enterprise Ltd operates nine facilities that produce more than 120 million garments annually. Its products include bras, underwear, nightwear, swim and beachwear, formalwear and casualwear, jackets and coats, babywear and socks.
The corporation's apparel operations in the UK were classified as held for sale and reported as a discontinued operation in the second quarter of fiscal 2006. Based upon an offer from a prospective buyer at the end of the second quarter of fiscal 2006, the corporation recognized an impairment charge of $1 million to write down the carrying value of the Courtaulds business to zero.
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