The board of directors at global manufacturer of brand-name products Sara Lee Corporation has approved the capital structure for the planned tax-free spin-off of its apparel business into a separate, publicly traded company called Hanesbrands Inc.

Hanesbrands will borrow $2.6 billion to establish the enterprise as a stand-alone, independent company. In connection with the spin-off, Sara Lee will receive a one-time payment of $2.4 billion from Hanesbrands.

Sara Lee anticipates completing the spin-off in early September, subject to market conditions and regulatory approvals.
 

Hanesbrands designs, manufactures, sources and markets apparel essentials, including T-shirts, underwear, socks, hosiery, casualwear and activewear.