HanesBrands buying Maidenform Brands for about $547.6 million

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FILE - This file photo taken May 2, 2005, shows women\'s lingerie on display in Houston. HanesBrands is buying underwear maker Maidenform Brands Inc. for approximately 47.6 million on Wednesday, July 24, 2013. The deal would add brands like Maidenform, Flexees and Self Expressions to the Hanesbrand roster that includes Playtex, Bali, Champion, Wonderbra and its namesake Hanes. (AP Photo/David J. Phillip, File)

WINSTOM-SALEM, N.C. – HanesBrands is buying bra maker Maidenform Brands Inc. for approximately $547.6 million.

The deal would add brands like Maidenform, Flexees and Self Expressions garments to the Hanesbrand roster that includes Playtex, Wonderbra and its namesake Hanes.

HanesBrands will pay $23.50 per share, a 23 per cent premium to Maidenform’s $19.09 Tuesday closing price. The companies put the deal’s value at about $575 million.

Maidenform has about 23.3 million outstanding shares, according to FactSet.

HanesBrands said Wednesday that Maidenform’s average-figure bra business will complement its full-figure bra collection and that its shapewear will be a nice addition as well.

HanesBrands Inc. plans to pay for the deal with available cash and short-term borrowings on its revolving credit facility.

Both companies’ boards unanimously approved the acquisition, which is expected to close in the fourth quarter. It still needs approval from Maidenform shareholders.

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