HanesBrands To Divest Australian Flooring And Pillow Businesses

HanesBrands has entered into definitive agreements to sell its Australian Dunlop Flooring and Tontine pillow businesses as planned. The businesses are noncore operations acquired as part of Hanes’ July 2016 purchase of Pacific Brands Limited of Australia.

Hanes has agreed to sell the business and assets of Dunlop Flooring in an all-cash transaction for AUD34 million ($25 million) to United Kingdom-based Victoria PLC, a publicly traded international designer, manufacturer and distributor of floor coverings. Dunlop Flooring, which manufactures and distributes underlay and hard flooring, had revenues of AUD51 million and EBITDA of AUD6 million for the fiscal year ended June 30, 2016, the reporting period ended prior to the Hanes acquisition of Pacific Brands.

Hanes has agreed to sell the Tontine pillow and quilt business and assets in an all-cash transaction for AUD14 million ($10 million) to John Cotton Group, a privately held international pillow and quilt manufacturer based in the United Kingdom. Tontine had revenues of AUD44 million and EBITDA of AUD2 million for the fiscal year ended June 30, 2016.

The sales are expected to be completed in the first quarter of 2017, pending customary closing conditions. When Hanes acquired Pacific Brands, the leading underwear and intimate apparel company in Australia, the company announced that it intended to divest the noncore Dunlop Flooring and Tontine pillow businesses.

Since the acquisition of Pacific Brands, Hanes has reported results for the Dunlop and Tontine businesses on a discontinued operations basis.

“We are pleased to reach a timely agreement to sell Dunlop and Tontine operations to international leaders in their respective industries,” said Hanes Chief Executive Officer Gerald W. Evans Jr. “This is a good transaction for all involved and will provide clarity and growth potential for our Dunlop Flooring and Tontine employees. We wish them the best in the future.”

HanesBrands, based in Winston-Salem, NC, owns Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei and Gear for Sports. The company sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery and activewear.