MEDIA RELEASE PR36294
Sara Lee Receives Binding Offer of EUR1.275 Billion From Unilever for its Global Body Care Business
DOWNERS GROVE, Illinois, Sept. 25/ PRNewswire-AsiaNet/ --
- Company Plans to Use Proceeds to Invest in Core Businesses and Repurchase Stock; Board Authorizes a
$1.0 Billion Share Repurchase Program
Sara Lee Corp. (NYSE: SLE) announced today it has received a binding offer of EUR1.275 billion from
Unilever to acquire its global body care and European detergents businesses. Where permissible, Sara Lee
has agreed to accept the binding offer upon satisfaction of certain conditions. In fiscal 2009, these businesses
generated annual sales of approximately EUR750 million ($1.0 billion) and accounted for approximately 55%
of the adjusted operating segment income[1] for the International Household and Body Care business.
The global body care and European detergents businesses encompass a wide variety of popular brands,
including Sanex, Radox and Duschdas.
The proposed transaction, which is subject to customary closing conditions and regulatory clearances, is
anticipated to close during calendar year 2010. Sara Lee will consult with relevant works councils during the
process. The company has also received significant interest in the remainder of its household business and is
continuing to pursue divestiture options for this business, which includes air care, shoe care, insecticides and
non-European cleaning brands.
"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, Sara Lee Corp.
"We intend to use proceeds from the divestiture to invest for growth in our core businesses and to repurchase
stock."
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 $1.0 billion share repurchase
program. This is in addition to the 13.5 million share authorization (approximately $150 million based on the
recent market price) remaining under the prior share repurchase program. The company reiterated that its
board intends to maintain the current quarterly dividend of $.11 for the next four quarters, regardless of the
timing of dispositions. Sara Lee intends to maintain a credit profile consistent with a strong
investment grade credit rating.
Sara Lee's International Household and Body Care business generated approximately EUR1.5 billion ($2.0
billion) in sales in fiscal 2009. The remainder of its household business, which is not included in the proposed
transaction, includes the Ambi Pur air care brand, Kiwi shoe care, Ridsect insecticides and White King bleach
brands.
[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.
About Sara Lee Corporation
Each and every day, Sara Lee (NYSE: SLE) delights millions of consumers and customers around the
world. The company has one of the world's best-loved and leading portfolios with its innovative and trusted
food, beverage, household and body care brands, including Ambi Pur, Ball Park, Douwe Egberts, Hillshire
Farm, Jimmy Dean, Kiwi, Sanex, Sara Lee and Senseo. Collectively, these brands generate almost $13 billion
in annual net sales covering approximately 180 countries. The Sara Lee community consists of 41,000
Sara Lee and its brands.
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
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.
Contact:
Media (North America): Jon Harris, +1-630-598-8661
Media (International): Joost den Haan, +31-30-297-2297
Analysts: Aaron Hoffman, +1-630-598-8739
SOURCE: Sara Lee Corporation
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