Sara Lee Agrees to Buy 10 Subsidiaries of Australian Textile Company
CHICAGO (AP) _ Sara Lee Corp. said Thursday it agreed to buy 10 subsidiaries of an Australian company for an undisclosed sum.
Linter Textiles Corp. began looking for buyers this week after talks snagged with Siskin Property Ltd., an Australian subsidiary of Merrill Lynch Capital Partners Inc., Linter’s accounting firm said in a statement from Melbourne, Australia.
Sara Lee, which makes food, clothing and other consumer products, said it will run the subsidiaries as separate entities and not incorporate them into the Chicago-based company.
The sale awaits approval by the Supreme Court of Victoria. Linter’s accounting firm, KPMG Peat Marwick, said it hoped the sale would be completed by May 31.
The agreement was reached Thursday in Australia, said Sara Lee spokeswoman Denise Stovell. She declined to discuss the purchase price or terms of payment.
The sale is ″in line with Sara Lee’s strategy of international expansion,″ she said.
Sara Lee announced in February it was entering the Eastern European market by acquiring 51 percent of Hungary’s largest coffee roaster, the Compack Trading and Packing Co.
Linter makes garments such as men’s dress shirts and undergarments. The Hilton Hosiery Company Ltd., a Linter subsidiary purchased by Sara Lee, controls about 70 percent of the domestic market in Australia.
Sara Lee produces its namesake baked goods; Hanes and Dim hosiery; Champion T-shirts; Ball Park, Jimmy Dean and Hillshire Farm meat products; and Kiwi shoe polish.