Sara Lee and Grupo Bimbo Receive U.S. Department of Justice Approval on North American Fresh Bakery Sale

 
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Sara Lee and Grupo Bimbo Receive U.S. Department of Justice Approval on North American Fresh Bakery Sale

Department of Justice remedies lead to reduced sale price of $709 million

Sara Lee Corp. (NYSE: SLE) has announced that it has reached an agreement with Grupo Bimbo S.A.B. de C.V. (BMV: BIMBO) and the U.S. Department of Justice (DOJ) that will allow the parties to complete the sale of Sara Lee's North American Fresh Bakery business to Grupo Bimbo following approval by a federal judge. The transaction is expected to close on Nov. 5, 2011.

The agreement with the DOJ includes remedies requiring Grupo Bimbo to divest certain brands and assets in the following regions and metropolitan areas - Omaha, Kansas City, Oklahoma City and central Pennsylvania. In addition, Grupo Bimbo will be required to divest certain assets and the perpetual rights to the Sara Lee and Earthgrains brands for fresh bread, buns and rolls in the state of California. As a result of these remedies, the parties have agreed to reduce the purchase price, which includes the assumption of debt, from $959 million to $709 million. As previously agreed, Grupo Bimbo will continue to assume all employee related commitments, including pension obligations.

"We're very pleased we've obtained regulatory approval and can now move toward closing this sale," said Marcel Smits, chief executive officer of Sara Lee Corp. "The North American Fresh Bakery business is a great fit for Grupo Bimbo, and this transaction allows Sara Lee to aggressively drive growth in our core coffee and meats categories as well as return shareholder value."

Sara Lee reiterated its intention to declare a $3.00 per share special dividend on the company's common stock. The exact timing of the dividend payout is still being determined.

As a part of the North American Fresh Bakery transaction, Sara Lee will retain the right to sell Sara Lee branded frozen desserts and meat products, including sliced deli meats. Grupo Bimbo will have the rights to the Sara Lee brand in the fresh baked goods category globally, with the exception of Australia and New Zealand.

In addition to the national fresh bakery brand Sara Lee, the acquisition provides Grupo Bimbo with a collection of leading regional bakery brands, such as Grandma Sycamore's, Heiner's and Rainbo. As part of the transaction, all of Sara Lee's approximately 13,000 North American Fresh Bakery employees will transfer to Grupo Bimbo. The sale also includes 41 plants in the U.S. and approximately 4,800 bakery routes.

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 and beverage brands, including Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Sara Lee and Senseo. Collectively, our brands generate nearly $9 billion in annual net sales from continuing operations. Sara Lee has approximately 20,000 employees in its continuing operations worldwide. In January 2011, Sara Lee Corp. announced that it will divide the company into two pure-play publicly-traded companies. One company will be focused around the current International Coffee and Tea business, while the other company will be focused on the North American Retail Meats and North American Foodservice businesses. For more information on this news and on Sara Lee's brands, please visit www.saralee.com.

Sara Lee Corp.Media:Mike Cummins, +1.630.598.8412orAnalysts:Melissa Napier, +1.630.598.8739