Hanes gains.

Author:Martin, Cathy
Position:NC TREND: Triad Region
 
FREE EXCERPT

In April, Hanesbrands announced its eighth acquisition in six years and its largest deal ever, an $800 million bid for Aussie underwear and intimate-apparel company Pacific Brands. Pacific owns Bonds, which holds the No. 1 position in men's, women's and children's underwear markets in Australia. "The Bonds brand is akin to the Hanes of Australia," Chief Operating Officer Gerald Evans said in a conference call, noting the purchase will boost annual revenue by more than $700 million.

Hanesbrands says the acquisition will make it the largest basic apparel company in the world and reflects the Winston-Salem-based manufacturer's rapid global growth. In 2010, only 11% of Hanesbrands' revenue came from outside the U.S. With the acquisition of Pacific and a pending $228 million purchase of Italy-based Champion Europe, also announced in April, 30% of revenue will be derived from overseas markets, and the company will hold the No. 1 or 2 market position in 12 countries. Hanesbrands posted record sales of $5.7 billion in 2015.

Pacific is coming out of a restructuring, shedding lines including sporting-goods brands Dunlop and Slazenger and shifting its focus to basic apparel such as underwear, T-shirts and baby clothes. Most of Pacific's products are made by other companies,...

To continue reading

FREE SIGN UP