WSJ: Sara Lee Considering Sale To Brazil's JBS

WSJ: Sara Lee Considering Sale To Brazil's JBS

Sara Lee Corp. (SLE) is weighing a sale to Brazil's JBS SA (JBSAY, JBSS3.BR),
as the consumer-products tries to chart its course after its chief executive
stepped down earlier this year, according to people familiar with the matter.
JBS approached Sara Lee and the talks have been on and off over several
months, these people said. But in recent weeks, Sara Lee has been considering
JBS's offer more seriously, these people added. Sara Lee, which makes such
brands as Jimmy Dean sausages and Hillshire Farm meats, has a market
capitalization of about $10.5 billion.
No final decision has been made, these people cautioned, and Sara Lee may
decide against a sale. Any deal would require a large amount of financing. JBS
has a market capitalization nearly equal to Sara Lee, which could make it
challenging to assemble a full takeover offer.
A sale of the whole company is just one of the options Sara Lee is
considering after its chief executive, Brenda Barnes, stepped down permanently
in August after suffering a stroke. Since then, the company has been searching
for a successor, but it needs to first make a decision about its strategic
options. That has been delaying the chief executive search process, people
familiar with the matter said.
Sara Lee is also considering breaking up its core meats and beverages
businesses and put them up for sale, the people said. The meats business, which
includes the Hillshire Farm and Jimmy Dean brands, could fetch interest from
rivals such as Smithfield Foods Inc. (SFD), according to the people familiar
with the matter.
JBS, the world's largest beef exporter, couldn't be reached for comment. Sara
Lee declined to comment.