HanesBrands, a leading marketer of everyday basic apparel based in Winston-Salem, N.C., today announced that it has entered into a definitive agreement to acquire Maidenform Brands Inc. for $23.50 per share, a 30 percent premium to Maidenform's average closing price over the past 30 days.
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," said Richard A. Noll, chairman and chief executive officer for Hanes. "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.
- Companies:
- Hanes Printables





