The all-cash transaction is expected to be accretive to earnings per share in the first 12 months after closing and is projected to deliver full benefits within three years of more than $500 million in incremental annual sales, $0.60 in EPS, $80 million of operating profit, and $65 million of free cash flow. After the transaction closes, HanesBrands’ pro forma projected annual revenue would be more than $5 billion.
The transaction, valued at approximately $575 million on an enterprise-value basis, has been unanimously approved by the boards of directors of both companies. The acquisition, which is subject to Maidenform shareholder approval, regulatory approval and other customary closing conditions, is expected to close in the fourth quarter of 2013.
“We look forward to adding Maidenform’s exciting brands and deep product expertise,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “This business is a natural fit into our core business and meets all of our acquisition criteria. We continue to use our free cash flow to create shareholder value, including paying quarterly cash dividends, reducing debt, and making smart, accretive acquisitions.”
The acquisition is expected to create growth and cost savings opportunities and increased scale to serve retailers. The acquisition will complement Hanes’ Innovate-to-Elevate strategy, which integrates the company’s world-class brands, low-cost supply chain and product innovation.
Maidenform sources all of its products from third-party manufacturers, while Hanes has company-owned global manufacturing supplemented by third-party manufacturing. Hanes expects to leverage its low-cost supply chain to maximize the value of Maidenform to retailers and consumers.
Maidenform has a great average-figure bra business that complements Hanes’ full-figure bra business. Maidenform is also recognized for its shapewear, while Hanes has an established panty business. The combination presents long-term growth opportunities by combining the respective strengths and capabilities of the portfolios and cross-introducing new products.
Maidenform sells intimate apparel bras, shapewear and panties under such brands as Maidenform, Flexees, Lilyette, Self Expressions and Sweet Nothings, as well as Donna Karan and DKNY under license. In 2012, 57 percent of the Maidenform’s revenue was generated by bra sales and 35 percent by shapewear sales. Approximately 90 percent of sales were in the United States.
Hanes’ intimate apparel brands include Playtex, Bali and Just My Size, which are market leaders in the full-figure bra category, as well as Hanes, Barely There, Wonderbra, Champion and L’eggs, and Donna Karan and DKNY under license.
“We are looking forward to Maidenform joining the Hanes family,” Noll said. “Maidenform has great brands that consumers trust. Combining the complementary strengths of both companies creates a lot of growth opportunities.”
Apparel/Garments | On 26th Sep 2017
The US Committee for the Implementation of Textile Agreements has...
Textiles | On 26th Sep 2017
Thrace-LINQ, a global supplier of fabrics for the textile industry,...
Fashion | On 26th Sep 2017
Ending the months-long wait, Google has unveiled its smart denim...
Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd
Increasing prices and lack of demand main issues facing industry
We have broad range of options in durable fabrics
Textile industry, India
Such fairs are a must for industry to showcase new innovations
InvestKonsult Sweden AB
Investkonsult Sweden AB has been buying and selling second-hand textile...
Schlegel und Partner
Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...
Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...
Label Ritu Kumar
‘Classics will return’ "There are a lot of people wearing western clothes ...
<b>Sidharth Sinha</b> has contributed to the successful rebirth and...
"Now we can see the Russian trend in international fashion. And Russian...
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes No Skip
Do you see sustainability as a route to business growth?Yes
Total Votes: 49
Do you think adopting a sustainable approach will be a profitable move for your business?Yes No Skip
Do you think the sustainability space has the needed tools and resources available for a business to lead change?Yes
Total Votes: 49
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes No Skip
Do you think adopting a sustainable approach will be a profitable move for your business?Yes
Total Votes: 49
Thanks for your valuable feedback. Claim your free latest sustainability e-book.
Do you want the world to know about your sustainability journey and your business’ environmental footprint?Yes
Total Votes: 49