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5th May 2011, Winston-Salem, NC

HanesBrands acquires Australian active wear supplier

HanesBrands has acquired the assets of TNF Group Pty Ltd, a major active wear supplier serving leading Australian sportswear retailers, expanding its global Champion active wear brand in the Eastern Hemisphere.

HanesBrands has acquired the assets of TNF Group Pty Ltd, a major active wear supplier serving leading Australian sportswear retailers, expanding its global Champion active wear brand in the Eastern Hemisphere.

The move expands HanesBrands into the outerwear segment in Australia, complementing its Playtex intimate apparel and emerging Hanes basic comfort apparel businesses there. TNF was already selling HanesBrands’ Champion active wear products in Australia and New Zealand under a license and distribution agreement.

TNF Group’s active wear sales were approximately $20 million (U.S.) last year, including the licensed Champion sales. HanesBrands says it bought the TNF assets for $9 million or less than seven times earnings before interest, taxes, depreciation and amortization.

HanesBrands’ strategy for its International segment businesses, which contributed 12% of total company sales last year primarily in fast-growing countries in the Americas and Asia, is to focus on the core categories of basic apparel, intimate apparel, and active wear using its global brands of Hanes, Wonderbra, Playtex and Champion. With the TNF assets, the company expands its Champion active wear brand that is already established in Japan and elsewhere in Asia.

Already with strong results in the first quarter, Hanes says it expects its 2011 International sales growth to be in the high teens or better. Last year, International sales increased 16%.

“Our accelerating international growth is duplicating our success in the United States by increasing market share through strong consumer brands in core categories supported by our low-cost global supply chain,” said Hanes Chairman and Chief Executive Officer Richard A. Noll. “This model should allow us to sustain substantial International growth for years.”

The acquired TNF business sells active wear and sportswear to sports and retail stores under the Champion, Leluu, Performax, and Track N Field brands. It also sells custom sports clothing to Australian private schools, and operates three retail stores.

Approximately 60 employees, primarily in sales, service, production, administration and distribution, will join HanesBrands, and management will remain in place at offices in Scoresby, Victoria.

 

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