HanesBrands to Acquire Maidenform in $575 Million Deal

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HanesBrands has entered into a definitive agreement to acquire Maidenform Brands , Hanes and Maidenform  announced today.

Hanes is to pay $23.50 per share in cash, a 30% premium over the last 30 days' average closing price. The enterprise value of the transaction, according to Hanes, is approximately $575 million.

Hanes expects the synergies produced by combining the two intimate apparel companies to approach full value within three years and provide more than $500 million more in annual sales, and earnings per share of $0.60.


Hanes said the combination of Maidenform's bra business and Hanes' panty business will presents long-term growth opportunities. The deal would add brands like Maidenform, Flexees, and Self Expressions to the HanesBrands roster that includes Playtex, Bali, Champion, Wonderbra, and its namesake Hanes. HanesBrands anticipates being able to potentially lower the costs of Maidenform products for retailers and consumers. Currently Maidenform sources its products from third-party manufacturers. With the acquisition, HanesBrands said Maidenform will now be able to take advantage of HanesBrands' company-owned manufacturing, which is supplemented by third-party manufacturers.

"We look forward to adding Maidenform's exciting brands and deep product expertise," Hanes Chairman and CEO Richard A. Noll said in his company's press release. "This business is a natural fit into our core business ..."

Maidenform CEO Maurice S. Reznik said in his company's release that "Maidenform and Hanes are two companies that share rich histories, world-class and complementary brands, and promising futures."

The boards of both companies have approved the deal, but Maidenform shareholders must still give their approval, and it must pass regulatory scrutiny. If all goes well, the transaction will be finalized in the fourth quarter of this year.

-- Material from The Associated Press was used in this report.

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The article HanesBrands to Acquire Maidenform in $575 Million Deal originally appeared on Fool.com.

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