HanesBrands announced that it has completed the acquisition of Bras N Things, a leading specialty retailer and online seller of intimate apparel in Australia, New Zealand and South Africa.
Bras N Things, which had net sales of approximately A$180 million (US$144 million) in 2017, will be managed as part of the Hanes Australasia business, which also includes the iconic Bonds basic apparel and underwear brand and Berlei bras.
Hanes Australasia now holds the No. 1 market positions in Australia for bras, sports bras, panties, socks, babywear and men’s underwear. Bras N Things sells proprietary bras, panties and lingerie sets through a retail network of approximately 170 stores and a fast-growing ecommerce platform (www.brasNthings.com).
“We are very excited to add Bras N Things to our strong Hanes Australasia business unit,” said Hanes chief executive officer Gerald W. Evans Jr. “With its highly effective, 100 percent consumer-direct business model and strong millennial following, Bras N Things is a strategic and complementary addition to our business portfolio. In addition, we are adding seasoned management depth to our already-outstanding Hanes Australasia management team.”
The all-cash transaction valued at A$500 million (approximately US$400 million) on an enterprise-value basis closed Feb. 12, 2018. The purchase price is approximately 10 times 2017 EBITDA and is expected to be less than eight times EBITDA after cost and revenue synergies. The acquisition is expected to be accretive to earnings in 2018.
Bras N Things attracts millennial consumers with on-target core products supplemented by seasonal product offerings. Bras N Things CEO George Wahby will continue to run the business and will join the Hanes Australasia management team led by president and managing director David Bortolussi.
Bras N Things operates 154 stores in Australia, 10 stores in New Zealand and seven stores in South Africa, and has a growing online e-commerce platform. Hanes believes the Bras N Things business model has the potential to be expanded to additional geographies.
Hanes created its Hanes Australasia business unit with the acquisition of Pacific Brands in 2016. The acquisition featured Bonds, Australia’s top brand of underwear, babywear and socks, and Berlei, the country’s No. 1 sports bra brand and leading seller of premium bras in department stores. Hanes Australasia also sells Bonds basic apparel, Playtex intimate apparel and Champion activewear in Australia.
Hanes supports its commercial business units around the world with the company’s global low-cost supply chain and manufacturing network, which primarily consists of company-owned and operated production facilities.
Hanes has made nine commercial acquisitions in the past eight years. The company now holds the No. 1 or No. 2 market share position for underwear, intimate apparel or hosiery in a dozen countries, including the United States, Australia, France, Japan, Canada, Germany, Italy, Mexico, Spain, Brazil, South Africa and New Zealand.
HanesBrands, based in Winston-Salem, N.C., owns Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Bras N Things, Berlei, Alternative and Gear for Sports. The company sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery and activewear.
