Sara Lee to spin off Hanesbrands this summer

US: Sara Lee to spin off Hanesbrands this summer

By just-style.com | 24 May 2006

Sara Lee Corporation today revealed further details of plans to spin off its Branded Apparel business in the Americas and Asia, and says the transaction should be completed between June and September 2006.

An information statement filed with the Securities and Exchange Commission today signalled the final phase before Hanesbrands Inc can become a stand-alone, publicly traded, global apparel company.

Sara Lee says stockholders will get all of the outstanding shares of Hanesbrands common stock, with the distribution ratio to be worked out shortly before the spin-off occurs.

Hanesbrands will then operate as a separate company from Sara Lee with a portfolio of leading apparel brands, including Hanes, Champion, Playtex, Bali, Just My Size, barely there and Wonderbra. In fiscal 2005, this business generated US$4.7bn in net sales.

Sara Lee says the new company's brands currently hold either the No 1 or No 2 US market position by sales in most categories in which they competes.

The enterprise will also design, manufacture, source and sell a broad range of apparel essentials such as T-shirts, bras, panties, men's underwear, kids' underwear, socks, hosiery, casualwear and activewear.

Brenda C Barnes, chairman and chief executive officer of Sara Lee Corporation, said: "When the spin-off is executed, Hanesbrands Inc shareholders will be in the uncommon position of owning stock in a new company that markets strong, well-known brands and is led by a management team with a successful track record. That's a powerful combination.

Barnes continued: "With the spin-off of Hanesbrands, we will be significantly closer to becoming a single, integrated operating company focused on delivering high-quality, innovative food, beverage, and household and body care products to consumers around the world."

Sectors: Apparel, Manufacturing

Companies: Hanesbrands, Hanes, Champion, Playtex, Just My Size, Wonderbra