Article: Sara Lee Corp. to sell food service branch $1.57 billion deal with Dutch firm Royal Ahold announced

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 the 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 announced Wednesday.

"With the direct sale of PYA/Monarch to Ahold, Sara Lee obtains cash now, eliminates market uncertainty and secures a multiyear supply contract, creating significant value for Sara Lee shareholders," said C. Steven McMillan, chief executive officer of Sara Lee Corporation.

The sale of PYA/Monarch is part of a plan to narrow ...

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