Sara Lee Corp. has sold the majority of its North American foodservice coffee and tea operations to Smucker Co. for $350 million in cash, reports The Wall Street Journal. The move is in line with Sara's Lee's strategy to hone its holdings as restructures into an international coffee and tea business and a North American business that includes the Jimmy Dean and Hillshire Farms brands.
The two companies have also formed a licensing agreement to develop liquid coffee technologies. Smucker, which owns Folger's and other coffee brands, said the liquid coffee initiative aligns with its desire to compete in all forms of coffee.
Sara Lee said it will receive a 10-year income stream totaling approximately $50 million, plus growth-related royalties, which will help cover R&D and other expenses.