Sara Lee Corporation has approved the capital structure for the planned tax-free spin-off of its apparel business into a separate, publicly traded company called Hanesbrands Inc.

Hanesbrands will borrow $2.6 billion to establish the enterprise as a stand-alone, independent company. In connection with the spin-off, Sara Lee will receive a one-time payment of $2.4 billion from Hanesbrands.

“Following the spin-off of the apparel business, Sara Lee shareholders will own stock in two great companies – Sara Lee and Hanesbrands – each of which will have a tighter business focus with improved prospects for growth and value creation,” said Brenda C. Barnes, chairman and chief executive officer, Sara Lee Corporation. “With the capital structure for Hanesbrands established, we reach another milestone in our long-range plan to transform Sara Lee into a more disciplined, high-performing company.”