The transaction, valued at approximately $575 million, is expected to close in the fourth quarter of 2013 and deliver full benefits within three years of more than $500 million in incremental annual sales and $65 million of free cash flow.

Supporting growth strategy

The acquisition will complement Hanes’ Innovate-to-Elevate strategy, which integrates the company’s world-class brands, low-cost supply chain and product innovation, and is expected to create growth and cost savings opportunities.

“We look forward to adding Maidenform’s exciting brands and deep product expertise,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “This business is a natural fit into our core business and meets all of our acquisition criteria. We continue to use our free cash flow to create shareholder value, including paying quarterly cash dividends, reducing debt, and making smart, accretive acquisitions.”

Complement to intimates business

Maidenform sells intimate apparel bras, shapewear and panties under such brands as Maidenform, Flexees, Lilyette, Self Expressions and Sweet Nothings, as well as Donna Karan and DKNY under licence. Its portfolio complements Hanes’ full-figure bra and panty business.

“We are looking forward to Maidenform joining the Hanes family,” Noll said. “Maidenform has great brands that consumers trust. Combining the complementary strengths of both companies creates a lot of growth opportunities.”

Hanes’ intimate apparel brands include Playtex, Bali and Just My Size, which are market leaders in the full-figure bra category, as well as Hanes, Barely There, Wonderbra, Champion and L’eggs, and Donna Karan and DKNY under licence.

Maidenform

Maidenform sources all of its products from third-party manufacturers, while Hanes has company-owned global manufacturing supplemented by third-party manufacturing. Hanes expects to leverage its low-cost supply chain to maximise the value of Maidenform to retailers and consumers.

In 2012, 57% of the Maidenform’s revenue was generated by bra sales and 35% by shapewear sales. Approximately 90% of sales were in the United States.

www.hanesbrands.com