HanesBrands to acquire France's DBApparel

HanesBrands Inc. (HBI), a consumer goods company with a portfolio of apparel brands, announced on Wednesday that it intends

to acquire DBApparel of France from Sun Capital Partners, Inc. in an all cash deal. Hanes' transaction offer values DBA at 400 million euros on an enterprise basis or approximately 550 million dollars.

The acquisition could close as soon as the third quarter, provided consultation with European and French works councils representing DBA employees is completed and customary closing conditions are met.

HanesBrands said the all-cash deal would be accretive to adjusted earnings per share in the first 12 months after closing, including an estimated 0.25 dollars of adjusted earnings per share excluding actions in 2015.

The company projects that the acquisition would add, on an annual basis, more than 875 million dollars in net sales, approximately 125 million dollars in adjusted operating profit excluding actions, and approximately 1.00 dollar in adjusted earnings per share excluding actions, with the realization of full benefits in three to four years.

DBA is a marketer of intimate apparel, hosiery and underwear in Europe, where Hanes does not have a material presence. DBA sells innerwear in 16 countries, primarily in Western and Central Europe, and its strong brands include DIM, Playtex and Wonderbra.

Both companies were formerly separate sister companies under the ownership of Sara Lee Corp. In 2006, Sun Capital acquired DBA, while Hanes spun off into an independent public company.

Hanes Chairman and Chief Executive Officer Richard Noll said, "We will be able to reunite two great companies to create significant growth and margin-expansion opportunities. Together, we will be a nearly 6 billion dollars company utilizing our disciplined Innovate-to-Elevate strategy and leveraging our global supply chain."

Hanes intends to fund the acquisition with cash on hand and third-party borrowings. In the deal, J.P. Morgan Securities LLC is serving as exclusive financial advisor to Hanes. HanesBrands shares gained 0.34 cents or 0.39 percent on Tuesday, and settled at 88.54 dollars. (DPA)