Sara Lee Corporation took one step closer to finalizing the spin-off of its apparel division, which will become a separate, independent, publicly-traded company called Hanesbrands, Inc. The company hopes to realize another big win like it did with Coach, Inc. in 2000. In the spin-off, Sara Lee will distribute to its stockholders all of the outstanding shares of Hanesbrands common stock, with the distribution ratio to be determined shortly before the spin-off occurs. Following the spin-off, Hanesbrands will be a separate company from Sara Lee, and Sara Lee will not retain any ownership interest. Sara Lee expects to complete the spin-off of Hanesbrands between June and Sept. 2006.
The business to be spun off as Hanesbrands Inc. is a consumer goods company with a portfolio that includes Champion, Duofold, and Hanes, as well as several intimate apparel brands. In fiscal 2005, this business generated $4.7 billion in net sales, up from $4.5 billion in 2004.