HanesBrands Plans To Buy DBApparel Of France From Sun Capital Partner

(RTTNews) - Apparel marketer HanesBrands Inc. (HBI) announced its intention to acquire DBApparel of France from Sun Capital Partners, Inc., if consultation with European and French works councils representing DBA employees is completed and customary closing conditions are met.

The all-cash deal would be accretive to adjusted earnings per share in the first year after completion, including an estimated $0.25 of adjusted earnings per share excluding actions in 2015. With the realization of full benefits in 3 to 4 years, this purchase would add over $875 million in net sales, about $125 million in adjusted operating profit excluding actions, and approximately $1.00 in adjusted earnings per share excluding actions, on an annual basis.

Hanes' transaction offer values DBA at 400 million euros on an enterprise basis, or nearly $550 million at current exchange rates, or approximately 71/2 times EBITDA. Hanes plans to fund the acquisition with cash on hand and third-party borrowings. The post-synergy multiple is projected to be less than 4 times EBITDA. The transaction could close as soon as the third quarter 2014.

Hanes and DBA were formerly separate sister companies under the ownership of Sara Lee Corp. (SLE). DBA is a marketer of intimate apparel, hosiery and underwear in Europe, new geography for Hanes.