American apparel giant Hanesbrands has snapped up Australian lingerie retailer Bras N Things in a not-so-skimpy deal worth half a billion dollars.
Hanesbrands had already established a commanding position in the local socks and jocks trade in 2016 when it paid $1.1 billion for Pacific Brands and acquired the Bonds, Berlei, Jockey, Rio and Holeproof brands.
On Friday morning it said it had agreed to buy Bras N Things from BB Retail Capital in an all-cash transaction worth $500 million.
The local retailer has about 170 stores across Australia, New Zealand and South Africa, selling high-end “intimate apparel”, including bras, underpants, swimwear, sleepwear and what it terms “playwear”.
Bras N Things had net sales of about $180 million last year, and had compound growth of 11 per cent over the past three years, Hanesbrands said.
BB Retail Capital is the investment vehicle of rich lister Brett Blundy, which owns the property group Aventus and has previously listed the jewellery chain Lovisa and homewares retailer Adairs.
Hanesbrands said it would use its global supply chain to enhance Bras N Things’ competitiveness, and would look at potentially taking the brand into new markets.
“We have acquired Bras N Things primarily for its strong brand and market position in the attractive intimate apparel category, providing both category and channel diversification to our business,” Hanes Australasia managing director David Bortolussi said.
Bras N Things would continue to be led by its current CEO and management, with “limited impact” on the company’s 1400 employees, Hanesbrands said.
The deal will be completed by the middle of this month.