HanesBrands to Make New Acquisitions a Priority Following Maidenform Purchase
Apparel basics manufacturer HanesBrands, Winston-Salem, N.C., is in the market for new companies to acquire in order to sustain its growth.
"It is time to turn our attention to the next priority: acquisitions," Richard Noll, CEO of HanesBrands, said on an investors' call on Thursday.
The company best known for its line of T-shirts saw net sales for the year increase two percent to $4.63 billion in 2013, with a 12 percent increase in the fourth quarter attributed in part to HanesBrands' acquisition of Maidenform, which was completed in October for $583 million. The bra manufacturer's sales in 2013 were approximately $500 million, roughly 15 percent lower than its purchase price.
In an interview with the Wall Street Journal, Noll would not disclose if it was currently in acquisition talks with any apparel manufacturers, but said it would focus on businesses it could incorporate into its current structure, such as T-shirt and activewear manufacturers.
The Maidenform purchase was the biggest news to come from the company since it announced it would exit the private label industry and discontinue operation of supplier Outer Banks in 2012. Following the acquisition, the company's stocks reached record highs, up 90 percent in 2013 and trading at $70 at the year's end.