Sara Lee sells direct selling unit to Tupperware Corp
11 Aug '05
2 min read
A global manufacturer and marketer of brand-name products, Sara Lee Corporation announced it has entered into a definitive agreement for the sale of its direct selling business to Tupperware Corporation for $557 million in cash.
Sale marks an important milestone in the company's Transformation plan.
The direct selling business, which markets cosmetics, skin care products, fragrances, toiletries and clothing in 18 countries, had been identified by Sara Lee as a business that would be sold as part of its Transformation plan, which was announced in February 2005.
The announcement comes earlier than was anticipated in that original plan. “This divestiture is another key step in simplifying their organization and concentrating on driving growth in their core food, beverage and household products businesses,” said Brenda C. Barnes, President and Chief Executive Officer of Sara Lee Corporation.
“They are pleased that they have been able to complete this sale so quickly and that they have passed another milestone in their Transformation plan to become a more focused, disciplined and high-performing Sara Lee."
The proceeds from the sale will be applied to support their commitment to returning value to shareholders through the dividend and share repurchase program they announced last week, as well as to debt repayment and investment in their core businesses.
The transaction has been approved by both companies' boards of directors and is expected to close in the second quarter of fiscal 2006, subject to regulatory approvals and other customary closing conditions.
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