Hanes Australasia (formerly Pacific Brands) has announced that it has entered into a definitive agreement to purchase Australian lingerie retailer Bras N Things from BB Retail Capital Pty Limited.
The all-cash transaction is valued at A$500 million on an enterprise-value basis. The purchase price is approximately 10 times 2017 EBITDA and is expected to be less than eight times EBITDA after supply chain and revenue synergies.
The transaction is expected to complete in mid-February 2018.
Bras N Things is a leading speciality retailer and online seller of intimate apparel in Australia, New Zealand and South Africa, with a retail network of approximately 170 stores and a fast-growing online business.
In 2017, Bras N Things had net sales of approximately $180 million with a three-year compound annual growth rate of 11%.
Combined brands owned by Hanes such as Berlei, Bonds, Rio, Jockey and Voodoo, the company will hold the number market position in bras and underwear in Australia.
Hanes Australasia president and MD David Bortolussi said Bras N Things is a great strategic and cultural fit with for the group.
"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.
"Bras N Things is led by a high quality management team with an excellent in store retail team focused on delivering the best fit and customer service in the market.
"The team has delivered impressive sales and earnings growth over recent years, and we look forward to investing in and continuing that growth. It’s exciting to have a retailer of this size and calibre join our group.”
The current CEO and management team of Bras N Things will continue to lead the business from its existing premises in Sydney, with limited impact on the organisation and its 1,400 employees.
Bras N Things and Hanes have many similarities including shared values and a focus on style, comfort and quality. Hanes has made it clear that they intend to work with the Bras N Things team to support and invest in delivering the company’s growth strategy, providing an opportunity to leverage Hanes’ scale and capability," Bras N Things CEO George Wahby said.
BBRC chairman Brett Blundy said the money from the sale would be reinvested into further ventures.
“I look forward to taking these proceeds and further capitalising BBRC Capital Management Fund I, which will focus on new investment opportunities from its offices in New York City & Sydney. We have a strong track record of posting superior returns and I look forward to building upon that experience.”