Bras N Things Finds A Buyer

Hanes Australasia (formerly Pacific Brands) today announced that it has entered into an agreement to acquire Bras N Things from BB Retail Capital Pty Limited (“BBRC”) and other associated parties. 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 (www.brasnthings.com). In 2017, Bras N Things had net sales of approximately A$180 million with a three-year compound annual growth rate of 11 percent. Combined, Hanes will hold the number one market position in bras and the number one market position in underwear in Australia.

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 8 times EBITDA after supply chain and revenue synergies.

Bras N Things is a well-established brand in an attractive market, category and channel, and is highly complementary to Hanes’ Australasian business which was acquired by the group in 2016. Hanes is a global leader in underwear and activewear and will use its extensive product portfolio and supply chain network to enhance the competitive position of Bras N Things and potentially leverage the model in other markets around the world.

Hanes Australasia president and managing director David Bortolussi said, “Bras N Things is a great strategic and cultural fit with our 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 CEO George Wahby said, “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.”

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