Client

Aug 23 2006

How Does HBI Spinoff Affect Sara Lee?

Does Sara Lee Really Benefit from Spinoff?

Sara Lee (SLE) recently issued full year results. Sales fell 1% to $15.9 billion and diluted earnings fell approximately 20% to $0.72 per share. The reasons for the shortfall? According to some analysts, stagnant business. Will the spinoff help?  read more »

Jul 27 2006

HanesBrands IPO

What Happened to the IPO?

Because of the large amount of money HanesBrands is borrowing ($2.6 billion of Sara Lee's Debt), HanesBrands is foregoing an IPO, which would incur significant capital gains tax.  read more »

Jul 27 2006

HanesBrands' New Board of Directors

Who's on the New Board?

Hanesbrands Inc.'s new board will consist of seven outside directors. These include Executive Chairman Lee A. Chaden, CEO Richard A. Noll, four corporate executives with international experience, and a prominent figure from Winston-Salem's corporate community.  read more »

Jul 26 2006

Sara Lee Debt

Can HanesBrands Survive Under Debt Load?

Sara Lee is planning on spinning off its U.S. apparel division, which will be owned by HanesBrands, Inc., with an estimated 60 percent debt load. HanesBrands will borrow $2.6 billion to capitalize the firm, $2.4 billion of which will be paid in a one-time dividend. Morningstar Inc. analyst Greggory Warren raises concerns about the long-term viability of the company, given this large debt load.  read more »

Jun 28 2006

Sara Lee Spinoff

HanesBrands Inc. Spins Off From Sara Lee Corporation

The Winston Salem, NC Hanes Branded Apparel division of Sara Lee Corp. will be named HanesBrands, Inc. when the spinoff from its parent company is completed by September 2006. Sara Lee Branded Apparel achieved over $6.4 billion in sales in 2005, with nearly $1.2 billion of those coming from its Europe organization, which includes branded businesses in Germany, Italy, France, the United Kingdom, Span, and throughout Eastern Europe.  read more »