Hanesbrands Inc. Acquires Pacific Brands Limited
Hanesbrands Inc., Winston-Salem, N.C., announced yesterday that it has acquired Pacific Brands Limited, an Australian underwear and intimates manufacturer, in a cash transaction valued at $800 million.
According to a press release, Pacific Brands Limited's portfolio includes Bonds, a men's and women's basics brand; and Berlei, a women's undergarment brand. It includes three business units—Underwear, Sheridan, and Tontine & Dunlop. It recently streamlined its business structure to focus on Underwear and Sheridan.
Hanesbrands Inc. projected that, under its new ownership of the publicly traded Pacific Brands Limited, the company would achieve calendar 2016 net sales in its core underwear business of approximately $600 million.
"Pacific Brands is a natural addition to the Hanesbrands portfolio, with its strong market-leading brands that will be complemented by our global supply chain," said Richard A. Noll, chairman and CEO of Hanesbrands Inc. "In the span of 10 years, we have transformed the company through acquisitions and our Innovate-to-Elevate initiatives. We have tripled operating profits and expanded from a $4 billion company concentrated in the United States to a $7 billion global underwear and activewear powerhouse spanning the Americas, Europe and Asia-Pacific. This foundation will serve as a catalyst for even further growth and value creation for the foreseeable future."
This is Hanesbrands Inc.'s sixth acquisition in the last three years, and it has added Australia and New Zealand to the list of countries in which it holds the No. 1 or No. 2 market share positions for underwear, intimate apparel and hosiery. The rest of the list includes the U.S., Canada, Mexico, Brazil, France, Germany, Italy, Spain and South Africa.
"Pacific Brands, led by a top-notch management and marketing team, will make a significant addition to our worldwide portfolio of leading brands," said Gerald W. Evans Jr., chief operating officer of Hanesbrands Inc. "We believe we can make meaningful contributions to the continued execution of the Pacific Brands growth strategy and support it with our world-class, low-cost supply chain. This will also add geographic scale that will benefit our existing Champion Australia business."
Hanesbrands Inc. will try to retain Pacific Brands Limited's senior management team to run the business following the acquisition. The acquisition, subject to Pacific Brands Limited shareholder approval and closing conditions, is expected to close in the third quarter of 2016.
For more information on Hanesbrands Inc., visit www.haneslocator.com.
Related story: Hanesbrands Inc. to Acquire Champion Europe