HanesBrands to Buy Rival DBApparel for About $544 Million

HanesBrands Inc. agreed to buy DBApparel, a French lingerie and underwear maker, from Sun Capital Partners Inc. for an enterprise value of 400 million euros ($544 million) to share rights to brands such as Playtex and Wonderbra. Hanes shares surged the most in six months.

The purchase may boost profit by about 25 cents a share in 2015 and by about $1 annually in three to four years, the Winston-Salem, North Carolina-based company said today in a statement. Hanes rose 9.2 percent to $96.72 in New York.

The acquisition will create one of the world’s largest underwear makers, Hanes said. DBApparel is a leader across western and central Europe where Hanes does not have a material presence. DBA generates more than $875 million in annual sales, according to Hanes Chief Executive Officer Richard Noll.

“Like us, they have big strong brands,” Noll said on a conference call today. “Their business provides complementary revenue growth opportunities.”

Both companies previously were owned by Sara Lee Corp, which sold DBApparel to Sun Capital in 2006 and spun off Hanes.

“DBA is very similar to HanesBrands, which is not surprising since we share the same parent company,” Noll said.

JPMorgan Chase & Co. advised Hanes, while Cleary Gottlieb Steen & Hamilton LLP served as legal counsel.

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