WINSTON-SALEM, N.C.--(BUSINESS WIRE)--HanesBrands (NYSE:HBI) has expanded its global Champion activewear brand in the Eastern Hemisphere by acquiring the assets of TNF Group Pty Ltd, a major activewear supplier serving leading Australian sportswear retailers.
The acquisition of TNF, which was already selling HanesBrands’ Champion activewear products in Australia and New Zealand under a license and distribution agreement, expands HanesBrands into the outerwear segment in Australia, complementing its Playtex intimate apparel and emerging Hanes basic comfort apparel businesses there.
Established in 2002, TNF Group’s activewear sales last year were approximately $20 million (U.S.), including the licensed Champion sales. HanesBrands bought the TNF assets for $9 million, or less than seven times earnings before interest, taxes, depreciation and amortization.
HanesBrands’ strategy for its International segment businesses, which contributed 12 percent of total company sales last year primarily in fast-growing countries in the Americas and Asia, is to focus on the core categories of basic apparel, intimate apparel, and activewear using its global brands of Hanes, Wonderbra, Playtex and Champion. With the TNF assets, the company expands its Champion activewear brand that is already established in Japan and elsewhere in Asia.
Already with strong results in the first quarter, Hanes expects its 2011 International sales growth to be in the high teens or better. Last year, International sales increased 16 percent.
“Our accelerating international growth is duplicating our success in the United States by increasing market share through strong consumer brands in core categories supported by our low-cost global supply chain,” said Hanes Chairman and Chief Executive Officer Richard A. Noll. “This model should allow us to sustain substantial International growth for years.”
The acquired TNF business sells activewear and sportswear to sports and retail stores under the Champion, Leluu, Performax, and Track N Field brands. It also sells custom sports clothing to Australian private schools, and operates three retail stores.
Approximately 60 employees, primarily in sales, service, production, administration and distribution, will join HanesBrands, and management will remain in place at offices in Scoresby, Victoria.
“We are excited to add the TNF business and team to create significant growth opportunities in Australia and New Zealand,” said Gerald Evans, co-operating officer and president of international businesses for HanesBrands. “TNF’s activewear business, which had continually expanded Champion sales since the 2009 license agreement, has an outstanding management team and workforce that are the best in their category and fit well with our growth culture.”
The acquisition will not materially affect HanesBrands’ 2011 guidance for total sales of $4.9 billion to $5 billion and earnings per diluted share of $2.70 to $2.90.
Cautionary Statement Concerning Forward-Looking Statements
Statements in press releases, made at investor conferences, or contained in certain other written, electronic and oral communications that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including those regarding the effect of the TNF Group acquisition on the company’s financial results, the company’s long-term goals, and trends associated with the company’s business. These forward-looking statements, if made, are based on current intent, beliefs, plans and expectations, and involve risks and uncertainties that could cause actual future results, performance or developments to differ materially from those described in or implied by such forward-looking statements, including risks related to integrating TNF Group and the failure to realize anticipated synergies or operational efficiencies over time. The company cautions investors not to place undue reliance on any forward-looking statements and encourages investors to review risk factors contained in the company’s most recent Securities and Exchange Commission reports, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, registration statements, press releases and other communications. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
HanesBrands
HanesBrands (NYSE:HBI) is a socially responsible leading marketer of everyday basic apparel under some of the world’s strongest apparel brands, including Hanes, Champion, Playtex, Bali, JMS/Just My Size, barely there, Wonderbra and Gear For Sports. The company sells T-shirts, bras, panties, men’s underwear, children’s underwear, socks, hosiery, casualwear and activewear produced in the company’s low-cost global supply chain. HanesBrands has approximately 55,000 employees in more than 25 countries and takes pride in its strong reputation for ethical business practices. More information about the company and its corporate social responsibility initiatives, including environmental, social compliance and community improvement achievements, may be found on the Hanes corporate website at www.hanesbrands.com.
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