CHICAGO (AP) — The European Commission has approved consumer goods giant Sara Lee Corp.'s acquisition of commercial baked goods maker Earthgrains Co., Sara Lee announced Monday.
The decision was the last regulatory hurdle for the $2.8 billion deal, which required approval from federal regulators and Sara Lee's receipt of a majority of Earthgrains' shares. It's the largest acquisition to date for Chicago-based Sara Lee.
Under the deal, Earthgrains' 225-person Salt Lake bakery will become part of the new Sara Lee Bakery Group.
Earthgrains, maker of such bread varieties as Earth Grains, IronKids, Colonial/Rainbo and Grant's Farm, had revenues of $2.6 billion during the fiscal year that ended in May. The St. Louis-based company is the nation's second-largest packaged bread and bakery manufacturer.
Earthgrains has 61 U.S. bakeries and two refrigerated dough plants, as well as a dozen bakeries and four dough factories in Europe, mostly in Spain and France.
Sara Lee, which has about $17.6 billion in annual revenues, has six U.S. bakery and frozen-food plants.
The acquisition is part of the Sara Lee's makeover. In its reorganization, more than 8,000 workers have been laid of since January and Sara Lee has sold several dozen of its 140 units.