Hanesbrands unveils plans for Maidenform

Hanesbrands Inc. has recently unveiled its integration plans

regarding the absorption of operations of Maidenform Brands, Inc., which Hanesbrands acquired on October 7, 2013.

Hanesbrands Inc. stated that the integration will merge Maidenform's New Jersey corporate operations into Hanesbrands' headquarters in Winston-Salem and into Hanesbrands' Manhattan offices.

The new owner of the lingerie brand added that it will consolidate Maidenform's Fayetteville, North Carolina, distribution centre operations into the Hanesbrands distribution network. The overall integration is expected to be primarily complete by the end of 2014.

According to Hanesbrands' statement, more than half of Maidenform's 1,330 employees will retain their jobs worldwide and Maidenform job reductions will primarily result from duplicative corporate and operational functions that are already in place at Hanesbrands and from the absorption of the Fayetteville distribution operations into the Hanes network.

Hanesbrands Inc. announced in early October that it had finalised its purchase of Maidenform Brands Inc. for 583 million dollars, a move that company officials expect will create growth and cost-savings.

On the merge, analysts pointed out that the Maidenform deal gives Hanesbrands (NYSE: HBI) a bigger portfolio of brands and consequently, a sounder leverage and pricing power with retailers that currently stock the brand, such as Wal-Mart or Macy’s.

“Maidenform is a great company with strong brands and a rich tradition of innovation in intimate apparel,” Richard Noll, Hanesbrands chairman and CEO, commented on the acquisition. “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.”