Sara Lee Corporation has announced that it has entered into a definitive agreement for the sale of its branded apparel business in Europe to an affiliate of Sun Capital Partners, Inc., a US private investment firm.

According to the terms of the agreement, the Sun Capital affiliate will pay Sara Lee €100 million in cash plus potential contingent payments based on the future performance of the business under the purchaser’s ownership.

The transaction is expected to close by the end of January, 2006.

The enterprise being sold by Sara Lee includes its branded apparel businesses in France, Germany, Italy, Spain, the United Kingdom and throughout Eastern Europe. This business markets brands such as Dim, Playtex, Wonderbra, Abanderado, Nur Die and Unno and generated nearly $1.2 billion in sales in fiscal year 2005, which ended July 2, 2005.

Sara Lee Courtaulds, the UK-based division that manufactures private-label clothing for retailers, is not part of this sale.