NEW YORK (TheStreet) -- Sara Lee (SLE) announced that it has signed an agreement to buy Brazilian coffee business Cafe Damasco for $60 million -- or a multiple of one time the company's annual sales.

Total net sales of the Cafe Damasco, based in Brazil's southern region of Parana, were close to BRL 100 million, or about $60 million in 2009. Sara Lee notes the company is a leader in Parana, through its namesake Damasco and other smaller brands.

Sara Lee said it expects to complete the transaction on Nov. 30.

Sara Lee said that it believes that with the transaction the company will benefit from Damasco's strong sales and distribution network in the South and achieve manufacturing synergies at its Sao Paulo, Brazil facility.

Sara Lee's core coffee brands in Brazil, the number-one coffee producing country in the world and second-largest coffee consuming country, consist of Pilao, Caboclo, Cafe do Ponto, Moka and Seleto.

>>Sara Lee Stock Up on Unilever's EU Nod

The offer comes as Sara Lee is divesting global business to focus on its core food and beverages businesses.

Shares of Sara Lee have fallen 1.6% to $15.02 in premarket trading. Coffee companies

Green Mountain Coffee Roasters

(GMCR)

and

Starbucks

(SBUX) - Get Report

are flat at $37.60 and down 1.5% to $30.67 respectively in premarket trading.

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-- Written by Andrea Tse in New York.

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