HanesBrands (NYSE: HBI), a leading worldwide marketer of
underwear, intimate apparel and activewear, today announced that it
has completed the acquisition of Bras N Things, a leading specialty
retailer and online seller of intimate apparel in Australia, New
Zealand and South Africa.
Bras N Things, which had net sales of approximately A$180
million (US$144 million) in 2017, will be managed as part of the
Hanes Australasia business, which also includes the iconic Bonds
basic apparel and underwear brand and Berlei bras.
Hanes Australasia now holds the No. 1 market positions in
Australia for bras, sports bras, panties, socks, babywear and men’s
underwear. Bras N Things sells proprietary bras, panties and
lingerie sets through a retail network of approximately 170 stores
and a fast-growing ecommerce platform (www.brasNthings.com).
“We are very excited to add Bras N Things to our strong Hanes
Australasia business unit,” said Hanes Chief Executive Officer
Gerald W. Evans Jr. “With its highly effective 100 percent
consumer-direct business model and strong millennial following,
Bras N Things is a strategic and complementary addition to our
business portfolio. In addition, we are adding seasoned management
depth to our already outstanding Hanes Australasia management
team.”
The all-cash transaction valued at A$500 million (approximately
US$400 million) on an enterprise-value basis closed Feb. 12, 2018.
The purchase price is approximately 10 times 2017 EBITDA and is
expected to be less than 8 times EBITDA after cost and revenue
synergies. The acquisition is expected to be accretive to earnings
in 2018.
Bras N Things attracts millennial consumers with on-target core
products supplemented by seasonal product offerings. Bras N Things
CEO George Wahby will continue to run the business and will join
the Hanes Australasia management team led by President and Managing
Director David Bortolussi.
Bras N Things operates 154 stores in Australia, 10 stores in New
Zealand and 7 stores in South Africa and has a growing online
e-commerce platform. Hanes believes the Bras N Things business
model has the potential to be expanded to additional
geographies.
Hanes created its Hanes Australasia business unit with the
acquisition of Pacific Brands in 2016. The acquisition featured
Bonds, Australia’s top brand of underwear, babywear and socks, and
Berlei, the country’s No. 1 sports bra brand and leading seller of
premium bras in department stores. Hanes Australasia also sells
Bonds basic apparel, Playtex intimate apparel and Champion
activewear in Australia.
Hanes supports its commercial business units around the world
with the company’s global low-cost supply chain and manufacturing
network, which primarily consists of company-owned and operated
production facilities.
Hanes has made nine commercial acquisitions in the past eight
years. The company now holds the No. 1 or No. 2 market share
position for underwear, intimate apparel or hosiery in a dozen
countries, including the United States, Australia, France, Japan,
Canada, Germany, Italy, Mexico, Spain, Brazil, South Africa, and
New Zealand.
Cautionary Statement Concerning Forward-Looking
Statements
This press release contains certain forward-looking statements,
as defined under U.S. federal securities laws, with respect to
statements about the company’s acquisition of Bras N Things and the
expected impact on our financial results. These forward-looking
statements are based on our current intent, beliefs, plans and
expectations. Readers are cautioned not to place any undue reliance
on any forward-looking statements. Forward-looking statements
necessarily involve risks and uncertainties, many of which are
outside of our control, that could cause actual results to differ
materially from such statements and from our historical results and
experience. These risks and uncertainties include such things as:
the highly competitive and evolving nature of the industry in which
we compete; the rapidly changing retail environment; any
inadequacy, interruption, integration failure or security failure
with respect to our information technology; the impact of
significant fluctuations and volatility in various input costs,
such as cotton and oil-related materials, utilities, freight and
wages; our ability to properly manage strategic projects;
significant fluctuations in foreign exchange rates; our ability to
attract and retain a senior management team with the core
competencies needed to support our growth in global markets; legal,
regulatory, political and economic risks related to our
international operations; our ability to successfully integrate
acquired businesses; our reliance on a relatively small number of
customers for a significant portion of our sales; and other risks
identified from time to time in our most recent Securities and
Exchange Commission reports, including our annual report on Form
10-K and quarterly reports on Form 10-Q. Since it is not possible
to predict or identify all of the risks, uncertainties and other
factors that may affect future results, the above list should not
be considered a complete list. Any forward-looking statement speaks
only as of the date on which such statement is made, and
HanesBrands undertakes no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise, other than as required by law.
HanesBrands
HanesBrands, based in Winston-Salem, N.C., is a socially
responsible leading marketer of everyday basic innerwear and
activewear apparel in the Americas, Europe, Australia and
Asia-Pacific. The company sells its products under some of the
world’s strongest apparel brands, including Hanes, Champion,
Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur
Die/Nur Der, L’eggs, Lovable, Wonderbra, Bras N Things, Berlei,
Alternative, and Gear for Sports. The company sells T-shirts, bras,
panties, shapewear, underwear, socks, hosiery, and activewear
produced in the company’s low-cost global supply chain. A member of
the S&P 500 stock index, Hanes has approximately 68,000
employees in more than 40 countries and is ranked No. 432 on the
Fortune 500 list of America’s largest companies by sales. Hanes
takes pride in its strong reputation for ethical business
practices. The company is the only apparel producer to ever be
honored by the Great Place to Work Institute for its workplace
practices in Central America and the Caribbean, and is ranked No.
110 on the Forbes magazine list of America’s Best Large Employers.
For eight consecutive years, Hanes has won the U.S. Environmental
Protection Agency Energy Star sustained excellence/partner of the
year award – the only apparel company to earn sustained excellence
honors. The company ranks No. 194 on Newsweek magazine’s green list
of 500 largest U.S. companies for environmental achievement. More
information about the company and its corporate social
responsibility initiatives, including environmental, social
compliance and community improvement achievements, may be found at
www.Hanes.com/corporate. Connect with HanesBrands via social media
on Twitter (@hanesbrands) and Facebook
(www.facebook.com/hanesbrandsinc).
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version on businesswire.com: http://www.businesswire.com/news/home/20180213005473/en/
HanesBrandsNews Media:Matt Hall, 336-519-3386orAnalysts and
Investors:T.C. Robillard, 336-519-2115
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