The American consumer goods company Sara Lee announced on August 6 that the European Commission has approved its acquisition of commercial baked goods maker The Earthgrains Co. The decision was the last regulatory hurdle for the $2.8bn deal, which required approval from federal regulators and Sara Lee's receipt of a majority of Earthgrains' shares. It is the largest acquisition to date for Chicago-based Sara Lee. Earthgrains had revenues of $2.6bn during the fiscal year that ended in May 2001. The St. Louis-based company is the second-largest American packaged bread and bakery manufacturer. Earthgrains has 61 US bakeries and two refrigerated dough plants, as well as a dozen bakeries and four dough factories in Europe, mostly in Spain and France. Sara Lee, which has about $17.6bn in annual revenues, has six US bakery and frozen-food plants. The acquisition is part of the Sara Lee's makeover, which included the lay off of over 8,000 workers and the sale of 140 units. Shares of Sara Lee fell 47 cents to close at $19.13 in trading Monday on the New York Stock Exchange, where Earthgrains shares rose 2 cents and closed at $40.22.
