Sara Lee Essay

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On 25 September 2009, Sara Lee announced it accepted a binding offer by Unilever for €1.275 billion to sell its global body care and European detergents business.[10] The transaction is subject to regulatory approval and consultation with European employee works councils.[11] On 9 November 2010, Sara Lee said that by selling its North American Fresh Bakery unit to Grupo Bimbo, it could grow in other areas. The $959 million deal gives Sara Lee the right to continue using the Sara Lee name on frozen desserts and meat products. Grupo Bimbo will use the Sara Lee name for fresh-baked products around the world except for Western Europe, Australia and New Zealand. The deal also means Grupo Bimbo gets 41 plants and the regional brands Grandma Sycamore's, Heiner's and Rainbo.[12] On 28 January 2011, Sara Lee announced the company would be split into two units. The company said its North American operations (including Jimmy Dean, Ball Park and Hillshire Farm) would take the Hillshire Brands corporate name, while the international beverage and bakery businesses (including Douwe Egberts, Senseo, Pickwick, Maison du Café, L'OR, Café Pilão, and Marcilla) would constitute a separate unit named D.E Master Blenders 1753. Some analysts claim splitting the business into two units would make a takeover more likely. Stockholders would have equal shares in both companies. In the same month, Sara Lee received noted media attention regarding their strategy to “refocus on the core” to revamp the company. In a Forbes magazine column, Adam Hartung stated Sara Lee couldn’t “cost-cut, refocus or re-align a business to success with no new products and no growth plan.”[13] Also, Marcel Smits, interim CEO since Barnes left due to a stroke, becomes the new CEO, and Jan Bennink becomes director and chairman.[5] The company will move its headquarters back to Chicago in

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