Sara Lee (SLE) said today its board has decided to split the company into two separate publicly traded companies.
Sara Lee’s food service businesses will be spun off into a new public company with the “Sara Lee” name. That company will include the Sara Lee, Jimmy Dean, Ball Park, Hillshire Farm, Chef Pierre and State Fair brands, and would have reported $4.1 billion in revenue in fiscal 2010 had it already been a separate company.
The second, yet-to-be-named company will include Sara Lee’s international beverage and bakery businesses, as well as its North American beverage business. This includes the brands Douwe Egberts, Senseao, Maison du Café, and other brands, and would have reported $4.6 billion in 2010 had it already been separate.
Also today, the company named interim CEO Marcel Smits permanent chief executive.
The separation is expected to be completed early in the 2012 calendar year.
The move to split up via spin-offs comes after the company attempted to make a sale of its meats business, as well as attempts at a private equity takeover.
Marathon Oil (NYSE:MRO) and ITT Corporation (NYSE:ITT) also recently announced they were splitting up their companies. Motorola split into Motorola Mobility Holdings (NYSE:MMI) and Motorola Solutions (NYSE:MSI) recently as well.
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