HanesBrands Inc. agreed to buy Maidenform Brands Inc. in a transaction valued at about $575 million in cash, expanding in lingerie.
HanesBrands will pay $23.50 for each of Iselin, New Jersey-based Maidenform’s shares, the lingerie maker said in a statement today. That’s 23 percent higher than yesterday’s closing price.
Maidenform said the transaction is expected to close in the fourth quarter.
HanesBrands said the purchase should boost earnings per share in the first year after completion. After three years, it will increase sales by more than $500 million, the underwear maker said.