Company adds Maidenform, Flexees and Lilyette intimate apparel and shapewear to industry-leading brand portfolio
HanesBrands (NYSE: HBI), a leading marketer of everyday basic apparel
under world-class brands, today announced that it has closed the
acquisition of Maidenform Brands, Inc., for approximately $583 million.
Maidenform is a leading seller of bras, shapewear and panties under
brands such as Maidenform, Flexees, Lilyette, Self
Expressions and Sweet Nothings, as well as Donna Karan and
DKNY intimate apparel under license.
Hanes will discuss expected acquisition-related sales and profit
contributions and expenses on its third-quarter 2013 investor conference
call anticipated to be held in late October or early November.
“Maidenform is a great company with strong brands and a rich tradition
of innovation in intimate apparel,” Hanes Chairman and Chief Executive
Officer Richard A. Noll said. “The Maidenform business and brands are a
perfect addition and complement to our core business and brands. This is
an excellent use of our strong free cash flow to create value.”
The acquisition is expected to create growth and cost savings
opportunities and increased scale to serve retailers. The acquisition
will complement Hanes’ Innovate-to-Elevate strategy, which integrates
the company’s world-class brands, low-cost supply chain and product
innovation.
Hanes funded the acquisition with cash on hand and short-term borrowings
on its revolving credit facility, which will be retired through free
cash flow.
Goldman, Sachs & Co. served as exclusive financial advisor and King &
Spalding LLP served as legal counsel to Hanes.
Cautionary Statement Concerning Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements include
all statements that do not relate solely to historical or current facts,
and can generally be identified by the use of words such as “may,”
“believe,” “will,” “expect,” “project,” “estimate,” “intend,”
“anticipate,” “plan,” “continue” or similar expressions. In particular,
among others, statements about expectations regarding the effects of the
Maidenform acquisition, including growth, cost-saving opportunities,
increased scale and the impact on the Innovate-to-Elevate strategy are
forward-looking statements. Forward-looking statements inherently
involve many risks and uncertainties that could cause actual results to
differ materially from those projected in these statements. Where, in
any forward-looking statement, we express an expectation or belief as to
future results or events, such expectation or belief is based on the
current plans and expectations of our management, expressed in good
faith. However, there can be no assurance that the expectation or belief
will result or will be achieved or accomplished, and actual results may
differ materially from those contemplated by the forward-looking
statements. A number of important factors could cause actual results to
differ materially from those contemplated by the forward-looking
statements, including, but not limited to our ability to achieve
expected synergies and successfully complete the integration of
Maidenform and the level of expenses and other charges related to the
acquisition. We believe these forward-looking statements are reasonable;
however, undue reliance should not be placed on any forward-looking
statements, which are based on current expectations. All forward-looking
statements speak only as of the date hereof. We undertake no obligation
to update or revise forward-looking statements that may be made to
reflect events or circumstances that arise after the date made or to
reflect the occurrence of unanticipated events, other than as required
by law.
HanesBrands
HanesBrands is a socially responsible leading marketer of everyday basic
apparel under some of the world’s strongest apparel brands, including Hanes,
Champion, Playtex, Bali, Maidenform, Flexees,
JMS/Just My Size, barely there, Wonderbra and Gear
for Sports. The company sells T-shirts, bras, panties, shapewear,
men’s underwear, children’s underwear, socks, hosiery, and activewear
produced in the company’s low-cost global supply chain. Ranked No. 512
on the Fortune 1000 list, Hanes has approximately 51,500 employees in
more than 25 countries and takes pride in its strong reputation for
ethical business practices. Hanes is a U.S. Environmental Protection
Agency Energy Star 2013 and 2012 Sustained Excellence Award winner and
2010 and 2011 Partner of the Year. The company ranks No. 141 on Newsweek
magazine’s list of Top 500 greenest U.S. companies. More information
about the company and its corporate social responsibility initiatives,
including environmental, social compliance and community improvement
achievements, may be found on the Hanes corporate website at www.HanesBrands.com.
