×
6 313
Fashion Jobs
WAITROSE
Chilled Warehouse First Line Manager – Nights
Permanent · AYLESFORD
NEW LOOK
Sales Manager
Permanent · LEEDS
EVERLAST GYMS
General Assistant - Everlast Gyms
Permanent · DUNSTABLE
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
MATCHES FASHION
Accounts Receivable Manager
Permanent · LONDON
NEXT
Sales Manager - Southampton Hedgeend
Permanent · SOUTHAMPTON
WAITROSE
Chilled Warehouse First Line Manager – Nights
Permanent · AYLESFORD
MATCHES FASHION
Stock Coordinator
Permanent · LONDON
HOLLISTER CO. STORES
Hollister CO. - Graduate Manager in Training, George Street
Permanent · Edinburgh
HOLLISTER CO. STORES
Hollister CO. - Graduate Manager in Training, Braehead
Permanent · Renfrew
JOHN LEWIS
Section Manager Warehouse
Permanent · WEYBRIDGE
HARRODS
Concessions HR Manager
Permanent · LONDON
HARRODS
Stock Operative
Permanent · LONDON
HARRODS
Restaurant General Manager
Permanent · LONDON
HARRODS
CRM Executive Customer Data
Permanent · LONDON
OYSHO
New Store Opening - Oysho White City - General Manager
Permanent · LONDON
HARRODS
Uniformed Security Officer
Permanent · LONDON
HARVEY NICHOLS HEAD OFFICE
Ecommerce Director
Permanent · LONDON
NEXT
Sales Coordinator - Galashiels
Permanent · HUDDERSFIELD
SPORTS DIRECT
Loss Prevention Supervisor
Permanent · LEICESTER
SPORTS DIRECT FITNESS
Assistant General Manager - Everlast Fitness
Permanent · BURY ST EDMUNDS
SPORTS DIRECT FITNESS
General Assistant - Everlast Gyms
Permanent · BURY ST EDMUNDS
Ads
By
Fibre2Fashion
Published
Apr 28, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

HanesBrands to buy Australian underwear company Pacific Brands

By
Fibre2Fashion
Published
Apr 28, 2016

HanesBrands, a leading worldwide marketer of underwear, intimate apparel and activewear, has announced that it has entered into a definitive agreement to acquire Pacific Brands Limited, the leading underwear and intimate apparel company in Australia.


HanesBrands


The acquisition would be Hanes’ sixth in the past three years and would add Australia and New Zealand to the list of countries where the company holds the No. 1 or No. 2 market share position for underwear, intimate apparel or hosiery. The countries include the US, Canada, Mexico, Brazil, France, Germany, Italy, Spain, and South Africa, the company said in a press release.

HanesBrands projects that under its ownership publicly traded Pacific Brands would have calendar 2016 net sales in its core Underwear and Sheridan businesses of approximately 800 million Australian dollars ($600 million) and adjusted operating profit of AUD75 million ($56 million). The Melbourne-based company, which has a June fiscal year end, sells primarily in Australia with some distribution in New Zealand, UK, and Asia.

The transaction is valued at approximately $800 million on an enterprise-value basis, or slightly more than 10 times projected calendar 2016 EBITDA (for all businesses), and would pay Pacific Brands shareholders AUD1.15 per share.

The all-cash transaction is expected to be immediately accretive to adjusted earnings per share and deliver an after-tax internal rate of return in the mid-teens. It is projected to deliver full benefits within three years, attaining adjusted operating profit of approximately $100 million, contributing approximately S$0.25 to Hanes’ adjusted EPS.

“Pacific Brands is a natural addition to the HanesBrands portfolio with its strong market-leading brands that will be complemented by our global supply chain,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “In the span of 10 years, we have transformed the company through acquisitions and our Innovate-to-Elevate initiatives. We have tripled operating profits and expanded from a $4 billion company concentrated in the US to a $7 billion global underwear and activewear powerhouse.”

Pacific Brands has three business units – Underwear, Sheridan, and Tontine & Dunlop. The company has undergone significant restructuring over the past two years to streamline its portfolio to focus on the core Underwear and Sheridan businesses.

Hanes intends to divest the Tontine pillow business and Dunlop Flooring business, which it does not consider part of Pacific Brands’ core. Combined, they account for 12 per cent of sales and operating profit (excluding corporate overhead allocation). Hanes is not including sales and profits for those businesses in its long-term projections.

Pacific Brands’ restructuring and focus on Underwear and Sheridan has resulted in significant sales and profit growth. Based on fiscal 2016 expectations, the core businesses have a combined two-year compound annual sales growth rate of approximately 8 per cent.

Of the core business, Underwear accounts for three-fourths of sales and includes underwear, bras, socks, hosiery, babywear and outerwear.

Copyright © 2022 Fibre2Fashion. All rights reserved.