Hanes Australasia, formerly Pacific Brands, has confirmed its definitive agreement to acquire Bras N Things from private equity firm BB Retail Capital, and other associated parties.
Retail group Hanes Australasia says the all-cash transaction to acquire Bras N Things is valued at $500 million on an enterprise-value basis which it expects to complete in mid-February 2018. The purchase price is approximately 10 times 2017 EBITDA and is expected to be less than eight times EBITDA after supply chain and revenue synergies.
The key attractor for Hanes Australasia to acquire Bras N Things was the retailer’s solid brand and market position in the underwear market, according to the retail group’s president and managing director, David Bortolussi. “We have acquired Bras N Things primarily for its strong brand and market position in the attractive intimate apparel category, providing both category and channel diversification to our business.”
Bortolussi also says that the other key to its purchasing decision was due to Bras N Things’ “high quality” management team, “impressive sales and earnings growth over recent years” and a “great strategic and cultural fit” with the Hanes group. “We look forward to investing in and continuing that growth. It’s exciting to have a retailer of this size and calibre join our group.”
Bras N Things is a leading speciality retailer and online seller of intimate apparel in Australia, New Zealand and South Africa, with a retail network of approximately 170 stores and a rapidly growing online business. In 2017, Bras N Things had net sales of approximately A$180 million with a three-year compound annual growth rate of 11 percent. Combined, Hanes says it will hold the number one market position in bras and the number one market position in underwear in Australia.
It is understood the current CEO and management team of Bras N Things will continue to lead the business from its existing premises in Sydney, with Hanes confirming it will aim for limited impact on the organisation and its 1,400 employees.
Bras N Things CEO George Warby says that the deal would enable the retailer to further advance its growth and to scale up. “Bras N Things and Hanes have many similarities including shared values and a focus on style, comfort and quality. Hanes has made it clear that they intend to work with the Bras N Things team to support and invest in delivering the company’s growth strategy, providing an opportunity to leverage Hanes’ scale and capability.”
About Bras N Things
Established in 1987, Bras N Things is one of Australia’s leading fashion intimates retailer with a strong online retail presence and approximately 170 stores across Australia, New Zealand and South Africa. It’s owned by private investment firm BB Retail Capital Pty Limited (BBRC) and other associated parties.
Bras N Things offers a wide range of women’s undergarments and related products including lingerie, sleepwear, playwear, swimwear, activewear, maternity, shapewear and only sells its own brands through vertically integrated operations. Designed by women for women, fit, comfort and design are at its core and the in-house design team based in Alexandria, Sydney are specialists in creating lingerie exclusive to Bras N Things.
About Hanes Australiasia
North Carolina based Hanes, owns several underwear and activewear apparel labels across in the Americas, Europe, Australia and Asia-Pacific, including some world’s largest apparel brands, including Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei, Alternative and Gear for Sports. The company sells T-shirts, bras, underwear, shapewear, socks, hosiery, and activewear produced in the company’s low-cost global supply chain. A member of the S&P 500 stock index, Hanes has approximately 68,000 employees in more than 40 countries and is ranked number 448 on the Fortune 500 list of America’s largest companies by sales. Hanes is listed on the NYSE under the code NYSE:HBI.
Locally, Hanes Australasia is home to some of Australia’s most recognised apparel and lifestyle brands including Bonds, Berlei and Sheridan. Hanes Australasia brands are sold via our wholesale partners and our retail network. Hanes Australasia previously operated as Pacific Brands and was acquired by Hanes in July 2016.