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Sara Lee Corp. said Wednesday it was spinning off its Wonderbra brand and other apparel operations in its Hanesbrands unit as a separate, publicly traded company this summer.
The move, announced last year and confirmed with a regulatory filing announced Wednesday, is part of an effort by Chicago-based Sara Lee to focus on foods, beverages, and household and personal-care products.
Hanesbrands, with operations in the Americas and Asia, has a prominent portfolio of apparel names, including Hanes, Champion, Playtex, Bali, Just My Size, Barely There and Wonderbra.
Sara Lee said the brands hold either the number one or number two US market position by sales in most categories in which they compete.
"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," Brenda Barnes, Sara Lee chairman and chief executive, said in a news release.
The business generated 4.7 billion dollars in net sales last year.
A Securities and Exchange Commission filing shows that sales declined mainly as the company discontinued product lines with thinner profit margins in the innerwear, outerwear and international segments, and shipped less sheer hosiery.
Other factors in the sales decline were lower selling prices and changes in product mix.
The company expects to close the spin-off between June and September, subject to market conditions, regulatory clearances and other conditions. It's seeking a ruling from the Internal Revenue Service that the deal will be tax-free to shareholders.
Hanesbrands will trade on the New York Stock Exchange under the symbol HBI.
Sara Lee announced last year that it would shed non-core assets to focus on its core brands in its packaged-food, beverages, and household and body-care businesses.
In early May the company said it was essentially giving away its Courtaulds apparel business to a group led by PD Enterprises Ltd.
Sara Lee will receive no proceeds from the transaction and will retain pension liabilities.
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AFP 241349 GMT 05 06
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