Sara Lee Corp. announced that it has completed the sale of PYA/Monarch, a leading foodservice operation, to U.S. Foodservice, a wholly-owned subsidiary of Royal Ahold, for $1.57 billion in cash. Royal Ahold, the nearly $50 billion Dutch supermarket giant, is one of the largest foodservice operators in the United States.
The transaction also includes a multi-year supply agreement between Sara Lee's U.S. food and beverage manufacturing operations and Ahold's U.S. Foodservice.
"Sara Lee is pleased to continue the strategic reshaping of our business portfolio by completing this important divestiture," said C. Steven McMillan, president and chief executive officer of Sara Lee Corporation. "We plan to use the proceeds generated from the sale of PYA/Monarch and other divestitures to repurchase stock, retire debt and fund future acquisitions."