Pacific Brands' billion dollar takeover

Comments Comments

Pacific Brands is subject to a $1.1 billion takeover bid from US apparel company HanesBrands.

Pending approval, the takeover will see HanesBrands acquire 100% of Pacific Brands' shares giving $AU1.15 per share.

The takeover bid flags Australia and New Zealand as the latest markets on HanesBrands' acquistion trail and will allow Pacific Brands to leverage off of its global infrastructure and supply chain to acclerate domestic and international growth.

Pacfic Brands chariman Peter Bush believes the move will enhance the company's performance and operational structure.

“Pacific Brands owns Australia’s leading underwear and home furnishing brands.

“HanesBrands has recognised the work done over the past two years that has seen the Board and management team under CEO David Bortolussi’s leadership reshape and simplify the business to focus on our highest quality brands and improve operational performance.

“That work has resulted in a significant re-rating of the company and its share price.

“Shareholders now have an opportunity to realise a further increase in value through a compelling proposal.”

Bush also said that despite the takeover, no major chances within Pacific Brands have been mapped.

“HanesBrands is a global leader in basic apparel and will use their extensive global footprint and supply chain network to enhance the competitive position of Pacific Brands.

“HanesBrands and Pacific Brands share a number of similarities including shared values and a focus on leading brands, design, innovation and quality.

“HanesBrands has made it clear that they intend to work with the Pacific Brands management team to support and invest in delivering the company’s growth strategy.

“HanesBrands can provide Pacific Brands with additional scale, sourcing benefits, financial flexibility and the opportunity to accelerate the growth of iconic brands such as Bonds and Sheridan.

We expect the transaction will have limited impact on Pacific Brands continuing operations and employees.”

comments powered by Disqus