SARA LEE COMPLETES SPINOFF
NEW YORK — Sara Lee Corp. on Wednesday said it has completed the spinoff of leather-goods maker Coach Inc.
This marks the end of a process the Chicago-based company began last May, when it said it planned to focus on the packaged-goods industry. In October, Sara Lee sold about 19.5 percent of Coach to the public through a stock offering.
It exchanged the rest of its holdings in Coach to Sara Lee stockholders, trading 0.846 Coach shares for each Sara Lee share tendered. This exchange reduced the total outstanding shares of Sara Lee by 41.4 million, to 787 million shares of common stock. The company got a stronger-than-expected response to the exchange offer it made in March, and was only able to accept about half the shares tendered by stockholders.
New York-based Coach has wholesale and retail operations. Sara Lee continues to produce the Hanes and Playtex innerwear lines. The company also makes the Champion brand.