Sara Lee to Acquire Damasco Coffee Business in BrazilBy Sara Lee Corporation, PRNE
Sunday, November 28, 2010
Company to Strengthen its Leading Position in the World's Second-Largest Coffee Market
DOWNERS GROVE, Illinois, November 29, 2010 - Sara Lee Corp. (NYSE: SLE) announced today that it has signed an
agreement to acquire Cafe Damasco, a coffee business based in the southern
region of Brazil. The acquisition price represents a multiple of around one
time annual sales. The transaction is expected to close on November 30 and
will be filed with the Brazilian competition authorities for review and
With its premium positioned Damasco brand and several smaller brands,
Cafe Damasco has a leading regional position in the southern state of Parana.
Total net sales of the Cafe Damasco company in 2009 were close to BRL 100
million (appr. US$ 60 million).
"The acquisition of Cafe Damasco will create a stronger foothold for Sara
Lee in the Brazilian territory, given Damasco's strong market position in the
southern part of Brazil. We will benefit from Damasco's strong sales and
distribution network in the South. The transaction will also deliver
manufacturing synergies in our facility in the Sao Paulo region, as well as
an improved competitive position in the Northeast thanks to the excellent
Damasco manufacturing facility in that area," said Frank van Oers, chief
executive officer, Sara Lee international beverage and bakery. "With our
current brands Pilao and Caboclo, we already have a relevant market position
in the central regions of Sao Paulo and Rio de Janeiro, which account for
roughly half of the total Brazilian coffee market."
Brazil is the number one coffee producing country in the world and the
second-largest coffee consuming country. Sara Lee is the market leader in
Brazil, offering a variety of brands, including its core coffee brands:
Pilao, Caboclo, Cafe do Ponto, Moka, and Seleto.
About Sara Lee Corporation
Each and every day, Sara Lee (NYSE: SLE) delights millions of consumers
and customers around the world. The company has one of the world's best-loved
and leading portfolios with its innovative and trusted food and beverage
brands, including Ball Park, Douwe Egberts, Hillshire Farm, Jimmy Dean, Sara
Lee and Senseo. Collectively, our brands generate nearly $11 billion in
annual net sales. Sara Lee has approximately 33,000 employees in its
continuing operations worldwide. Please visit www.saralee.com for the
latest news and in-depth information about Sara Lee and its brands.
Media: Ernesto Duran, +31-30-297-2329; Analysts: Aaron Hoffman, +1-630-598-8739
Tags: Brazil, Downers grove, Illinois, November 29, Sara Lee Corporation, United States of America