Sara Lee Merges with Chock full O'Nuts

Sara Lee Corp. (Chicago, IL) and Chock full o'Nuts Corp. have entered into an agreement and plan of merger. The agreement allows Chock full o'Nuts shareholders to receive shares of Sara Lee Corp. common stock at a market value of $11.00 per share. In connection with the merger agreement, Sara Lee has terminated its previously announced cash tender offer for all of the outstanding shares and convertible debentures of Chock full o'Nuts.

"The combination of Chock full o'Nuts with Sara Lee's existing U.S. coffee business enhances both companies' geographic coverage, expands our channels of distribution and improves production flexibility," said Steven McMillan, president and CEO of Sara Lee.

Chock full o'Nuts Corp. roasts, packs and markets regular, instant and decaffeinated coffees under the Chock full o'Nuts label.

Sara Lee Corp. is a global consumer packaged good company with its Sara Lee, Hillshire Farm and Douwe Egberts brands.