Winston-Salem - Activewear and underwear giant HanesBrands has completed the US$400 million acquisition of Bras N Things, the speciality retailer and online seller of intimate apparel in Australia, New Zealand and South Africa.
Bras N Things, which had net sales of approximately A$180 million (US$144 million) in 2017, will be managed as part of the Hanes Australasia business, which also includes the iconic Bonds basic apparel and underwear brand and Berlei bras.
As a result of the acquisition, the company says that Hanes Australasia now holds the leading market positions in Australia for bras, sports bras, panties, socks, babywear and men’s underwear. Bras N Things currently operates 154 stores in Australia, 10 stores in New Zealand and seven stores in South Africa along with a growing online e-commerce platform. Hanes believes the Bras N Things business model has the potential to be expanded to additional regions.
“We are very excited to add Bras N Things to our strong Hanes Australasia business unit,” said Hanes chief executive officer Gerald W. Evans Jr. “With its highly effective 100 per cent consumer-direct business model and strong millennial following, Bras N Things is a strategic and complementary addition to our business portfolio. In addition, we are adding seasoned management depth to our already outstanding Hanes Australasia management team.”
The all-cash transaction valued at A$500 million (approximately US$400 million) 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 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 number one 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.
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