May 8, 2006

Sara Lee may sell European meats business to Smithfield

Sara Lee Corporation announced on Friday (May 5), that it is negotiating the sale of its European meats business with Smithfield Foods Inc, the world's largest pork processor and hog producer.

The intended sale is a move by Sara Lee to simplify its portfolio as it transforms into a world-class, integrated operating company, said Brenda C. Barnes, chairman and chief executive officer of Sara Lee Corporation.

Sara Lee's European meats business garnered US$1.1 billion in sales in fiscal 2005 and holds its largest positions in France, Benelux, and Portugal. The organisation employs approximately 4,500 people.

Outside the United States, Smithfield owns operations in France, Poland, Romania, and the United Kingdom, and operates joint ventures in Mexico and China. Smithfield employs more than 51,000 people.

Sara Lee said it would be able to generate more than US$3 billion in after-tax proceeds from divesting non-core businesses, including the planned sale of other businesses later this year.