SRL Sara Lee Corp

 
TIDMSRL 
 
 

Sara Lee Corp. (NYSE: SLE) announced today it has received a binding offer from SC Johnson to acquire Sara Lee's global shoe care business, including brands Kiwi, Kiwi Kleen, Bama, Tana and Meltonian, for EUR245 million.

Where permissible, Sara Lee has agreed to accept the binding offer upon satisfaction of certain conditions. In fiscal 2009, this business generated annual sales of approximately EUR230 million ($315 million based on fiscal 2009 exchange rates) and accounted for approximately 19 percent of the adjusted operating segment income1 for the International Household and Body Care business.

The proposed transaction, which is subject to customary closing conditions and regulatory clearances, is anticipated to close by the end of fiscal 2011 (July 2, 2011). Sara Lee will consult with relevant works councils during the process.

"With the binding offer for our global shoe care business, we have now announced or completed transactions for substantially all of our Household and Body Care business," said Marcel Smits, interim chief executive officer, Sara Lee Corp. "We're excited to get closer to bringing this process to a close as we continue to focus on our core protein and coffee businesses, while continuing to evaluate the best opportunities for value creation and investment of cash."

Sara Lee has completed the sale of its body care business (to Unilever for EUR1.21 billion), its air care business (to P&G for EUR320 million), and its stake in its Godrej Sara Lee joint venture (to Godrej Consumer Products Ltd. for EUR185 million). In addition, the company has agreed to sell its White King and Janola brands to Symex Holdings Limited for EUR37.9 million and its non-Indian insecticides business to SC Johnson for EUR153.5 million, with the transfer of the insecticides business pending approval by the European Commission. Total Household & Body Care transactions are expected to generate pretax sales proceeds of approximately EUR2.15 billion, and represent approximately 100 percent of the fiscal 2009 adjusted operating segment income1 of the International Household and Body Care business. In February, Sara Lee hedged EUR1.6 billion at $1.35.

Sara Lee's International Household and Body Care business generated approximately EUR1.5 billion ($2.0 billion) in sales in fiscal 2009.

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 $11 billion in annual net sales. Sara Lee has approximately 33,000 employees in its continuing operations worldwide. Please visit www.saralee.com for the latest news and in-depth information about Sara Lee and its brands.

About SC Johnson

SC Johnson is a family-owned and managed business dedicated to innovative, high-quality products, excellence in the workplace and a long-term commitment to the environment and the communities in which it operates. Based in the USA, the company is one of the world's leading manufacturers of household cleaning products and products for home storage, air care, and insect control. It markets such well-known brands as GLADE®, OFF!®, PLEDGE®, RAID®, SCRUBBING BUBBLES®, SHOUT®, WINDEX® and ZIPLOC® in the U.S. and beyond, with brands marketed outside the U.S. including AUTAN®, BAYGON®, BRISE®, ECHO®, KABIKILLER®, KLEAR®, and MR. MUSCLE®. The 124-year-old company, with more than $8 billion in sales, employs approximately 12,000 people globally and sells products in virtually every country around the world. www.scjohnson.com

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.

 
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      $295 
Depreciation and  Amortization(2) 
 
 
(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. 
 
 
Sara Lee Corporation 
Media (North America): Alissa Bolton, +1-630-598-8123 
Media (International): Joost den Haan, +31.30.297.2297 
Analysts: Melissa Napier, +1-630-598-8739 
 
 
 
 
 

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