Sara Lee to Sell Unit to Dutch Grocery Chain

Sara Lee Corp. has signed an agreement to sell its PYA/Monarch food service operation to a Dutch supermarket giant for $1.57 billion. The sale, which also includes a supply agreement between Dutch firm Royal Ahold and Sara Lee’s U.S. food and beverage manufacturing operations, is expected to close by the end of October, Chicago-based Sara Lee said. The sale of PYA/Monarch is part of a plan to narrow Sara Lee’s focus on three product areas in which the company holds strong positions--food and beverage, intimates and underwear, and household products. The reshaping plan, which Sara Lee announced in May, also included plans to split off Coach leather goods, and the divestitures of Champion athletic wear and the International Fabrics division of Courtaulds, businesses that did not fit within the company’s renewed focus. Sara Lee shares closed up 13 cents at $18.75, while Royal Ahold’s American depositary receipts gained 38 cents to close at $29.06, both on the New York Stock Exchange.