Sara Lee’s spin-off of its international Coffee & Tea business is expected to be completed by the end of June 2012.
Sara Lee’s spin-off of its international Coffee & Tea business is expected to be completed by the end of June 2012. Post spin-off, the Coffee & Tea business will be domiciled as a new publicly traded company incorporated in the Netherlands.
In order to execute the spin-off and domiciliation, Sara Lee will spin-off all of the shares of its U.S. subsidiary that holds its Coffee & Tea business. Immediately after this spin-off occurs, the U.S. subsidiary will pay a $3.00 special dividend to Sara Lee shareholders. Sara Lee expects that this dividend will be eligible for qualified dividend treatment. Subsequently, a new Dutch company will be established as the parent company for the Coffee & Tea business and its shares will be distributed to Sara Lee shareholders. The U.S. Coffee & Tea company will become a subsidiary of the Dutch public parent and a holding company for the Coffee & Tea operations.
The Coffee & Tea business also intends to move its operating headquarters from Utrecht to Amsterdam in the second half of calendar year 2012. Amsterdam was chosen as the location for the new headquarters in the Netherlands due to its central location and accessibility to an international labor market.