HanesBrands, the US clothing and sportswear group which bought Bonds owner, Pacific Brands in 2016, is to buy another major Australian clothing business the privately-owned Bras N Things.
Hanes paid $1.1 billion for Pacific Brands almost two years ago and said overnight Thursday in its 4th quarter earnings release that Bras N Things would cost around $A500 million on an enterprise value (ie including debt).
Bras N Things is owned by Brett Blundy, who also controls or owns shares in a number of major retail brands, the most recent being snapping up 12% of shoe retailer, RGC late last year.
Blundy is the chairman of investment vehicle BB Retail Capital, which owns stakes in the listed jewellery chain Lovisa, the listed homewares group Adairs and the unlisted lingerie companies Bras N Things and Honey Birdette.
The group also has a large shareholding in the listed property group Aventus Property, which owns 14 retail centres across Australia.
The company operates 154 stores in Australia, 10 stores in New Zealand and 7 stores in South Africa.
In its statement Hanes said it entered into a definitive agreement to acquire Bras N Things, a leading specialty retailer and online seller of intimate apparel in Australia, New Zealand and South Africa.
"In 2017, Bras N Things had net sales of approximately A$180 million (US$144 million).
"The all-cash transaction is valued at A$500 million (approximately US$400 million) on an enterprise-value basis. The purchase price is approximately 10 times 2017 EBITDA and is expected to be less than 8 times EBITDA after cost and revenue synergies. The pending acquisition is expected to be accretive to earnings in 2018.”
“Bras N Things is a leading intimate apparel retailer and ecommerce business that is a strategic and natural complement to our very successful Bonds underwear business in Australia and New Zealand,” Evans said. “Bras N Things has a great business model that appeals to millennial consumers featuring core products supplemented by seasonal product offerings. This consumer-direct sales model has significant potential for expansion into other geographic markets. We are delighted that Bras N Things CEO George Wahby, who oversees a talented management team, will remain with our Hanes Australasia business unit.”
Bras N Things, based in Sydney, sells proprietary bras, panties and lingerie sets through a retail network of approximately 170 stores and a fast-growing ecommerce platform (www.brasNthings.com). The company’s three-year compound annual growth rate is 11 percent, and online sales last year increased 71 percent and represent nearly 10 percent of total sales.
With the acquisition, the company’s combined Australian commercial businesses would hold the No. 1 market position in bras and the No. 1 market position in panties in Australia, as well as the No. 1 market position for underwear, socks and babywear.
The acquisition is expected to close in the next two weeks.
