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HanesBrands Closes AUD 500m Acquisition of Australian Intimate Apparel Seller Bras N Things.

M2 EQUITYBITES-February 14, 2018-HanesBrands Closes AUD 500m Acquisition of Australian Intimate Apparel Seller Bras N Things


14 February 2018 - Winston-Salem, US-based consumer goods company HanesBrands (NYSE: HBI) has completed the acquisition of Australian intimate apparel specialty retailer and online seller Bras N Things, the company said.

Bras N Things is present in Australia, New Zealand and South Africa.

The company, which had net sales of approximately AUD 180m (USD 144m) in 2017, will be managed as part of the Hanes Australasia business, which also includes the iconic Bondsbasic apparel and underwear brand and Berlei bras.

Hanes Australasia now holds the No. 1 market positions in Australia for bras, sports bras, panties, socks, babywear and men's underwear.

Bras N Things sells proprietary bras, panties and lingerie sets through a retail network of approximately 170 stores and a fast-growing ecommerce platform.

The all-cash transaction valued at AUD 500m (approximately USD 400m) on an enterprise-value basis closed Feb. 12, 2018. The purchase price is approximately 10 times 2017 EBITDA and is expected to be less than 8 times EBITDA after cost and revenue synergies. The acquisition is expected to be accretive to earnings in 2018.

Bras N Things attracts millennial consumers with on-target core products supplemented by seasonal product offerings.

Company CEO George Wahby will continue to run the business and will join the Hanes Australasia management team led by president and Managing director David Bortolussi.

Bras N Things operates 154 stores in Australia, 10 stores in New Zealand and seven stores in South Africa and has a growing online e-commerce platform. Hanes believes the Bras N Things business model has the potential to be expanded to additional geographies.

Hanes created its Hanes Australasia business unit with the acquisition of Pacific Brands in 2016.

The acquisition featured Bonds, Australia's top brand of underwear, babywear and socks, and Berlei, the country's No. 1 sports bra brand and leading seller of premium bras in department stores. Hanes Australasia also sells Bonds basic apparel, Playtex intimate apparel and Champion activewear in Australia.

Hanes supports its commercial business units around the world with the company's global low-cost supply chain and manufacturing network, which primarily consists of company-owned and operated production facilities.

Hanes has made nine commercial acquisitions in the past eight years. The company now holds the No. 1 or No. 2 market share position for underwear, intimate apparel or hosiery in a dozen countries, including the United States, Australia, France, Japan, Canada, Germany, Italy, Mexico, Spain, Brazil, South Africa, and New Zealand.

HanesBrands, based in Winston-Salem, N.C., is a socially responsible leading marketer of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia-Pacific.

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Publication:M2 EquityBites (EQB)
Geographic Code:6SOUT
Date:Feb 14, 2018
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