Let $F$ be free abelian with basis $B$. If $B$ is the disjoint union $B = \bigcup B_{\lambda}$, then $F = \sum F_{\lambda}$, where $F_{\lambda}$ is free abelian with basis $B_{\lambda}$
What does $F=\sum F_{\lambda}$ mean? I'm unfamiliar with the notation of a summation sign with free abelian groups. Is it direct product (or sum), or is it supposed to be a union that was mis-written into the book?
The theorem is true when $\sum$ is taken to mean "direct sum of Abelian groups." Some people might use $\bigoplus$ for a direct sum, but $\sum$ also makes some sense, because you can construct a direct sum of Abelian groups as formal sums of elements from any of the individual groups.
Note that the theorem is also true if the $F_\lambda$ are viewed as the subgroups of $F$ generated by the $B_\lambda$, and when $\sum F_\lambda$ is taken to mean the subgroup generated by all the $F_\lambda$. These results are related. Without further context, though, it's impossible to know which specific interpretation was intended. (Note that with this latter interpretation, $\sum$ means "subgroup generated by", not "set-theoretic union".)