HanesBrands IPO

What Happened to the IPO?

Because of the large amount of money HanesBrands is borrowing ($2.6 billion of Sara Lee's Debt), HanesBrands is foregoing an IPO, which would incur significant capital gains tax. Instead, Sara Lee distributed, according to a pre-determined ratio, all outstanding HanesBrands common stock shares to its shareholders on a tax-free, pro rata basis. Now that the spinoff is complete, both Sara Lee and HanesBrands will be independent companies, with neither retaining ownership interest in the other.

Source: July 20, 2006, Sara Lee Corporation.

Back to Spinoff News Index

• Sara Lee Spinoff - an overview of the latest HanesBrands spinoff news and links to updates.