Sara Lee ( SLE) said its board approved the capital structure for the planned spinoff of its apparel business into a separate, publicly traded company called Hanesbrands.

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

The Hanesbrands business makes T-shirts, underwear, socks and other apparel. The business had about $4.7 billion in sales in fiscal 2005.

"Following the spin-off of the apparel business, Sara Lee shareholders will own stock in two great companies -- Sara Lee and Hanesbrands -- each of which will have a tighter business focus with improved prospects for growth and value creation," said Brenda Barnes, chairman and CEO of Sara Lee.

Sara Lee will distribute all of the Hanesbrands stock to its shareholders. Following the spinoff, the two companies won't have any ownership interest in the other. Sara Lee expects to complete the spinoff in early September.

Shares of Sara Lee fell 3 cents to $16.55 in regular trading Thursday.

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