Sara Lee Corp. expects to complete the spinoff of its Hanes, Playtex and Wonderbra apparel unit by September as it sheds assets to focus on fast-growing businesses.
The Hanesbrands Inc. business had $4.7 billion in sales in fiscal 2005. The distribution ratio for the shares will be determined "shortly" before the transaction takes place, Chicago-based Sara Lee said Wednesday in a statement. The company said it won't own any Hanesbrands shares following the spinoff.
Sara Lee Chief Executive Officer Brenda Barnes is engineering the biggest restructuring in the company's 67-year history by disposing of businesses to focus on improving food, beverage and household products units which sell everything from Kiwi shoe polish to Hillshire Farm deli meats. The company agreed this month to sell its U.K. clothing division and has sold its European apparel units.
"With the spinoff 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," Barnes said in Wednesday's statement.
The brands owned by Hanesbrands rank first or second in the U.S. market in most areas in which the company competes, Sara Lee said.
Shares of Sara Lee rose 1 cent Wednesday to close at $17.08 in New York Stock Exchange composite trading.
In 2000, Sara Lee sold shares in its Coach leather-goods unit. Coach Inc. shares have risen more than 1,000 percent since then.