Sara Lee signs agreement with IBM

Sara Lee has signed a business management agreement with IBM.

The deal – lasting seven years – will see IBM running its partner’s operations in Europe and North America.

As a result, transaction processing, procurement activities and applications development will be overseen by the computing company.

Bill Gilmour, general manager for IBM Consumer Products, said: “Sara Lee’s move to globally integrated, back office shared services will be accelerated by their work with IBM.”

Sara Lee added the deal was part of its aim to simplify its business methods – by creating integrated supply chains, centres of excellence, process discipline and any necessary outsourcing.

Theo de Kool, the company’s executive vice president and chief financial and administrative officer, commented: “IBM is a trusted and long-standing partner of Sara Lee, with deep experience in large, global programmes.”

Earlier this month, it emerged Farmer Bros was to acquire Sara Lee’s direct-store delivery coffee business for $45 million (31.1 million pounds).

The deal is expected to see a cash transaction, with any resulting debt planned as an asset purchase.

Based in Illinois, US, Sara Lee’s brands include Biotex, Radox and Sanex.

The organisation was established in 1939, following the buying out of a company.