Sara Lee to spin off apparel unit to stockholders

24 May '06

2 min read

Sara Lee Corporation has disclosed further information regarding its previously announced plan to spin off its Branded Apparel, Americas/Asia, business to Sara Lee stockholders.

As described in an information statement filed with the Securities and Exchange Commission, with the spin-off, Sara Lee is creating a separate, independent, publicly traded global apparel company named Hanesbrands Inc.

In the spin-off, Sara Lee will distribute to its stockholders all of the outstanding shares of Hanesbrands common stock, with the distribution ratio to be determined shortly before the spin-off occurs.

Following the spin-off, Hanesbrands will be a separate company from Sara Lee, and Sara Lee will not retain any ownership interest. Sara Lee expects to complete the spin-off of Hanesbrands between June and September, 2006, subject to market, regulatory and other conditions.

"With today's filing, the final phase necessary for Hanesbrands Inc to become a separate, publicly traded company has been initiated," said Brenda Barnes, Chairman and CEO of Sara Lee Corporation.

"I am delighted that we have reached this critical milestone in executing our long-range plan to transform Sara Lee into a more disciplined, high-performing company for our shareholders. With the spin-off of Hanesbrands, we will be significantly closer to becoming a single, integrated operating company focused on delivering high-quality, innovative food, beverage, and householdand body care products to consumers around the world," Brenda added.

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