Pursuits

Hanesbrands Offers $835 Million for Aussie Underwear Firm

  • Board of Pacific Brands unanimously recommends cash offer
  • U.S. firm intends to sell target's flooring, pillow units
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U.S. clothing manufacturer Hanesbrands Inc. agreed to buy Australia’s Pacific Brands Ltd. for A$1.1 billion ($835 million), gaining iconic underwear labels including Bonds and Jockey.

The North Carolina-based company offered A$1.15 per share in cash, 22 percent more than the target’s closing price on Wednesday, according to a statement to the Australian stock exchange. The board of the Melbourne-based company unanimously recommended the deal. Pacific Brands shares surged 23 percent to A$1.155 at 11:10 a.m. in Sydney.