Sara Lee Board OKs Spin-Off of Coffee, Tea Business

June 1, 2012

1 Min Read
Sara Lee Board OKs Spin-Off of Coffee, Tea Business

DOWNERS GROVE, Ill.Sara Lee Corp.s board of directors approved the separation of its international Coffee & Tea business from Sara Lee Corp. The board simultaneously approved a 1-for-5 reverse stock split of shares of Sara Lee common stock to take effect once the separation is complete later this month.

The distribution of the CoffeeCo common stock will be made after market close on June 28 to Sara Lee shareholders of record as of the close of business on June 14. The coffee and tea unit will also pay a $3-per-share special dividend after the separation to shareholders of record. Immediately after the separation and prior to the market open on June 29.

After the distribution of the $3 special dividend, CoffeeCo will merge with a subsidiary of D.E Master Blenders 1753 N.V., the ordinary shares of D.E Master Blenders 1753 will be exchanged for the shares of CoffeeCo common stock and all of the ordinary shares of D.E Master Blenders 1753 will be distributed to the CoffeeCo shareholders.

Upon completion of the proposed spin-off, Christopher Begley, current director of Sara Lee Corp. and the former chairman and chief executive officer of Hospira, Inc., will serve as non-executive chairman of the board of MeatCo.

Jan Bennink, currently executive chairman of Sara Lee Corp., will serve as non-executive chairman of the board of D.E MASTER BLENDERS 1753. Bennink has served as executive chairman of Sara Lee Corp. since February 2011.

Subscribe and receive the latest insights on the health and nutrition industry.
Join 37,000+ members. Yes, it's completely free.

You May Also Like