SARA LEE TO INVEST IN PLAYTEX FAMILY PRODUCTS
SARA LEE TO INVEST IN PLAYTEX FAMILY PRODUCTS STAMFORD, Conn., Nov. 5 /PRNewswire/ -- Playtex Family Products
Corporation today announced an agreement under which Sara Lee Corporation (NYSE: SLE) will make a minority investment in Playtex Family Products Corporation.
Under the agreement, Sara Lee will become a 25 percent stockholder by paying $62.5 million for a convertible preferred stock of Playtex, certain shares of outstanding Playtex common stock held by existing stockholders and an option exercisable through July 1, 1996, to acquire the balance of the common equity. Sara Lee and Playtex Family Products also announced licensing arrangements in which Sara Lee will have the right to sell non-apparel products bearing Playtex brands outside the United States and Canada, and Playtex Family Products will be licensed in the United States and Canada to sell certain products currently sold by Sara Lee in foreign markets. As previously announced, Sara Lee has signed an agreement to acquire Playtex Apparel, Inc., a privately owned company independent of Playtex Family Products. The Sara Lee investment in Playtex Family Products is conditioned upon the closing of the Apparel acquisition, which is awaiting governmental clearance. Playtex Family Products, headquartered in Stamford, is a leading manufacturer and distributor of well-recognized health and beauty aid products, including Playtex and Ultimates tampons, Jhirmack hair care products, Playtex nurser disposable feeding systems, Cherubs baby products, Playtex Living, Handsaver and Heavy Duty household and industrial gloves and Tek toothbrushes. The company's sales in the year ending December 1990 were $405.5 million. Sara Lee Corporation, an international food and consumer products company with headquarters in Chicago, markets a wide variety of brand- name products, including Hanes, Hanes Her Way, L'eggs, Champion, Kiwi, Ball Park, Jimmy Dean, Dim, Douwe Egberts and, of course, Sara Lee. Playtex Family Products also announced today that it had filed a registration statement with the Securities and Exchange Commission for a public offering of $150 million of senior secured notes due 1997 to be managed by BT Securities Corporation. It is anticipated that the net proceeds of the offering, together with the proceeds of the Sara Lee investment, will be applied to repay a portion of the company's outstanding bank debt. Playtex Family Products intends to seek the consent of its bank lenders to certain amendments to its bank agreement in connection with the Sara Lee transaction and the notes offering. The various transactions are conditioned upon each other and are expected to close contemporaneously before year-end. A registration statement relating to the senior secured notes has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. -0- 11/5/91 /CONTACT: Joel Smilow of Playtex Family Products, 203-356-8101; or E. Denise Stovell of Sara Lee, 312-558-8691/ (SLE) CO: Sara Lee Corporation; Playtex Family Products Corporation ST: Connecticut, Illinois IN: HOU SU: FNC GK-CK -- NY059 -- 1299 11/05/91 14:00 EST
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|Date:||Nov 5, 1991|
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