Sara Lee will split. The board of directors of the Downers Grove, Illinois-based company has voted to put its foodservice, Jimmy Dean, Hillshire Farm, Ballpark and other meat business in a new company under the Sara Lee name. That group had revenues of $4.1 billion in 2010. Interim CEO Michael Smits will be permanent Chief Executive of the company.
The North American and international beverage and bakery side of the business which reported $4.6 billion in revenue last year will form a yet-to-be-named company. Chief Executive for North America, C.J. Fraleigh becomes CEO of the new company.
The decision to split came after bids from JBS and a group of investors led by Apollo Global Management fell through earlier this week. There is speculation JBS will make a run at the new, smaller and more affordable Sara Lee meat company.


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