Sara Lee in talks with Smithfield

By Times wire services | Saturday, May 06, 2006

Buyout

Consumer products maker Sara Lee Corp. said Friday it is in exclusive negotiations to sell its European meats business to hog producer Smithfield Foods Inc. as part of a plan to trim fat from its diverse portfolio of food operations.

Sara Lee, whose brands include the U.S.-based Jimmy Dean packaged meats, Hanes underwear and its namesake baked goods, also said it expects to take a $125 million impairment charge on the European unit to reflect a reduction in value. The charge will be booked in the quarter ended April 1.

The European meats business, located in Hoofddorp, the Netherlands, had fiscal 2005 sales of $1.1 billion and also operates in France, Belgium, Luxembourg and Portugal.

The company announced plans more than a year ago to sell the European meats division.

— Times wire services