DOW JONES NEWSWIRES
Sara Lee Corp. (SLE) said it is exploring options for its
international household and body care business, including a
possible sale, after receiving expressions of interest.
The move by the consumer-packaged goods company, which has been
in restructuring mode since 2005, follows a string of efforts to
sell or spin off slower growth businesses, including its spin-off
of Hanes Apparel. Those moves have come amid a battle with
shrinking consumer budgets and fluctuating commodity prices as the
recession has turned up the pressure on consumers and companies in
general to save money.
Chairman and Chief Executive Brenda C. Barnes said the company
would carefully evaluate all opportunities for the division, which
has annual sales of about $2.3 billion and 8,000 employees
worldwide. Based in the Netherlands, the unit includes a range of
air, shoe and laundry care products, insecticides and men's
toiletries.
Sara Lee didn't name the interested parties in Monday's news
release.
Last month, Sara Lee swung to a fiscal-second-quarter loss amid
restructuring charges, a write-down of its North American
food-service beverage business and commodity-hedging losses. The
company also lowered its outlook again for the year amid projected
sales weakness.
Shares were up 3.9% in premarket trading to $8.57 and are off
16% so far this year.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com