Sara Lee Corp. says it is splitting into two public companies, one focused on retail and foodservice, and the other on drinks and baked goods.

The retail and foodservice unit will retain the Sara Lee name and will include that brand as well as Jimmy Dean, Ball Park, Hillshire Farm and others.

The other unit has yet to be named. Sara Lee will pay a special dividend of $3 in 2012 before the spinoff is completed.

The Wall Street Journal reported Thursday the split off was likely after takeover offers fell short of expectations.

Sara Lee, in Downers Grove, Ill., says the split is the next logical step after selling its international household and body care business and agreeing to sell its North American fresh bakery business.