Sara Lee to buy back up to $3 bil. stock over 3 years

Sara Lee Corp. said Tuesday that it plans to use proceeds from the sale of its international household and body care segment to repurchase about $2.5 billion to $3 billion of its shares over a three-year period.

The Downers Grove-based food maker said it will likely buy back approximately $1 billion to $1.3 billion of the shares this year, which should improve its earnings per share.

Sara Lee, which makes Jimmy Dean sausages, Hillshire Farm deli meats and its namesake baked goods, said late last year it planned to sell its body care operations to Unilever and its air freshener business to Procter & Gamble Co. for a total of approximately 1.6 billion euros ($2.18 billion). The two components make up about two-thirds of the household and body care segment. Sara Lee said its "highly confident" it can find a buyer for the rest.

The company anticipates a third-quarter charge of approximately $550 million related to the proposed sale.

Sara Lee's stock added 17 cents to $13.15 in afternoon trading. It hit a fresh 52-week high of $13.25 earlier in the session.