CHICAGO-Food giant Sara Lee, which is splitting into publicly traded companies, announced Thursday that it will move up to 650 jobs to the new headquarters of its North American Meats Co. The city is looking at tax breaks to help with the move to a 300,000-square-foot former industrial building at 400 S. Jefferson St.
The company, now located at its headquarters in Downers Grove, IL, said it will split into two firms, with the other one being for its International Coffee and Tea business, in the first half of 2012. Names for the two firms have not been yet announced. All year, as part of a streamlining plan, the company has been divesting businesses such as its North American refrigerated dough division, its North American Fresh Bakery and other divisions.
The downtown building, a former warehouse on a 2-acre site at VanBuren and Jefferson, was for sale in the quarter as an office for $15 million, being marketed by Mike Nardini with CBRE. Sterling Bay LLC purchased the building last month. Sterling Bay LLC purchased the building last month. Sara Lee will occupy 270,000 square feet of the building.
The City Council and Community Development Commission are considering a tax increment finance deal for Sara Lee, for up to $6.5 million. The commission meets Dec. 13 on the TIF proposal.
Jan Bennink, executive chairman at the firm, said in a statement that at the new location, the meats company will showcase its products such as Ball Park, Hillshire Farm and Jimmy Dean. “This move will put our new company’s headquarters in the heart of one of the world’s business capitals and will be one of the key elements of building our more nimble, creative and innovative culture,” Bennink said.
Mayor Rahm Emanuel said the move is a huge win for the city. “The new company will bring these high-paying jobs to the city, as well as its first-class brands and leadership in this key sector, he said in the statement. Sara Lee has also announced it will work with the city to encourage other food-related companies to relocate to Chicago, to try to form a new industry cluster.
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