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 (US).
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 $959m to $709m. Grupo Bimbo will continue to assume all employee related commitments, including pension obligations.
Marcel Smits, CEO of Sara Lee Corp, said: “We’re very pleased we’ve obtained regulatory approval and can now move toward closing this sale. 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 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.
Source: Sara Lee
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