Hanesbrands to acquire DBApparel

US underwear manufacturer Hanesbrands said it will buy DBApparel from Sun European Partners for $550m (£324m).

The company said the acquisition would add, on an annual basis, more than $875 million in net sales and $125 million in adjusted operating profit excluding actions within three or four years of closing.

Hanes and DBA were formerly separate sister companies under the ownership of Sara Lee Corporation. In 2006, Sun Capital acquired DBA and Hanes spun off into an independent public company.

Sun Capital had put DBApparel up for sale in 2012, but took it off the market in May last year due to a lack of interest.

Story continues below

Under the new cash deal, which is expected to close in the third quarter, Hanes will hold the rights to sell the Playtex, Wonderbra and DIM brands in the Americas and Asia, while DBA retains the rights to the brands in Europe.

The news comes 11 months after Hanes acquired Maidenform Brands Inc. in a deal worth over £495 million.

“Purchasing DBApparel would represent another great acquisition for Hanes and a good use of our ample cash flow to generate significant shareholder value,” said Hanes chairman and CEO Richard A. Noll.

“We will be able to reunite two great companies to create significant growth and margin-expansion opportunities. Together, we will be a nearly $6 billion company utilizing our disciplined Innovate-to-Elevate strategy and leveraging our global supply chain.”

Sun European Partners vice president Lionel de Posson commented: “We are very proud to have successfully contributed to the strategic repositioning and operational transformation of DBA, creating a robust business which is now in good financial health.

“We believe that this proposed transaction, which would bring together two complementary geographical market leaders, would represent a key milestone in the turnaround strategy that we have helped to implement at DBA in recent years. We look forward to identifying similar investment opportunities in France in the future.”



Related posts