HanesBrands has purchased privately held Alternative Apparel in an all-cash transaction valued at approximately $60 million on an enterprise basis. Alternative Apparel, based in Norcross, Georgia, is expected to have full-year 2017 net sales of approximately $70 million.
"This is an exciting acquisition that supports our activewear growth strategy," HanesBrands chief executive officer Gerald W Evans Jr said. "We will be able to leverage our global low-cost supply chain, which is a recognised social, environmental and ethical leader, with another strong brand to expand our market and channel penetration, including online. Combining these two companies is a great way to create value and generate growth opportunities."
"Alternative Apparel has an attractive business model, a very strong and differentiated brand, and a highly talented team of employees," Evans said. "Adding the Alternative brand and product lineup further diversifies our sales mix as we emphasise growth across all channels, including online."
Alternative Apparel CEO Evan Toporek will remain with HanesBrands to continue leading the business out of Norcross. "We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform," Toporek said. "Partnering with a like-minded company that is a longtime industry innovator and leader will benefit our employees, our customers, and our brand as a whole."
For the third quarter of fiscal 2017, HanesBrands expects EPS of approximately $0.55, and adjusted EPS of approximately $0.60 – consistent with company guidance. The company also hopes year-to-date net cash from operations of approximately $330 million
"We met our goal of returning to organic growth, and we continued to generate strong operating cash flow," said Evans. "Our sales and EPS results, driven by stronger-than-expected international growth, are expected to be consistent with our guidance." (RR)
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