Sara Lee Receives Binding Offer of EUR1.275 Billion From Unilever for its
Global Body Care Business
Company Plans to Use Proceeds to Invest in Core Businesses and Repurchase Stock; Board Authorizes a $1.0 Billion Share Repurchase Program
DOWNERS GROVE, IL,
The proposed transaction, which is subject to customary closing conditions and regulatory clearances, is anticipated to close during calendar year 2010.
"The divestiture of body care and European detergents would advance our strategy to concentrate on our core food and beverage businesses where we enjoy a strong competitive position and where we can generate superior shareholder returns," said Brenda C. Barnes, chairman and chief executive officer,
Barnes added, "Receiving an offer from a leading company like Unilever reflects the high quality talent, strong consumer recognition of our leading brands, and the significant growth potential of these businesses."
The company also announced that its board of directors has authorized a
Sara Lee's International Household and Body Care business generated approximately EUR1.5 billion (
(1) Constitutes a non-GAAP financial measure. See the reconciliation to the most comparable U.S. generally accepted accounting principle measure at the end of this release.
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About Unilever
Unilever's mission is to add vitality to life. They meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Unilever is one of the world's leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe. Its portfolio includes some of the world's best known and most loved brands including thirteen EUR1 billion brands and global leadership in many categories in which the company operates. The portfolio features brand icons such as Knorr, Wall's, Flora, Dove, Lynx, Persil, Marmite and Pot Noodle. Unilever has around 174,000 employees in approaching 100 countries and generated annual sales of EUR42 billion in 2008. More information about Unilever and its brands can be found at http://www.unilever.com.
International Household and Body Care Reconciliation of Adjusted Operating Segment Income Before Depreciation and Amortization (in millions) Fiscal 2009 Operating Segment Income $242 Increase in operating segment income from: Depreciation 35 Amortization 8 Significant Items(1) 10 Adjusted Operating Segment Income before Depreciation and Amortization(2) $295 (1) "Significant items" are income or charges that management believes have had a significant impact on the earnings of the segment, are not indicative of the segment's core operating results and affect comparability from period to period. For fiscal 2009, these items included charges for exit activities, asset and business dispositions; transformation and Project Accelerate costs; and income from benefit plan curtailment gains. (2) The term "adjusted operating segment income before depreciation and amortization" excludes from operating segment income as reported the impact of depreciation, amortization and significant items.
For further information: For further information: Media (North America): Jon Harris, (630) 598-8661; Media (International): Joost den Haan, +31-30-297-2297; Analysts: Aaron Hoffman, (630) 598-8739
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