Sara Lee Moves Closer to Coffee and Tea Business Spin-off
Sara Lee expects to complete the spin-off of its international Coffee & Tea business by the end of June 2012. Post spin-off, the Coffee & Tea business will be domiciled as a new publicly traded company incorporated in the Netherlands.
“With over 250 years of history, the Coffee & Tea business has solid market positions and deep roots in many European markets,” says Sara Lee executive chairman Jan Bennink. “Domiciling Coffee & Tea in the Netherlands allows management to be close to its key Western European markets and effectively manage its global portfolio.”
The Coffee & Tea business intends to move its operating headquarters from Utrecht to Amsterdam in the second half of calendar year 2012. Amsterdam was chosen as the location for the new headquarters in the Netherlands due to its central location and accessibility to an international labour market.
As a consequence of the spin-off, Sara Lee expects to release approximately $700 million of deferred tax liabilities currently on its balance sheet. At the time of the spin-off, Sara Lee now expects to have total debt of approximately $1.7 billion and approximately $300 million in cash.
