Wonderbra owner Hanesbrands Inc will spend $547 million to purchase rival Maidenform Brands Inc , where sales have been flagging, and expand its range of lingerie for younger consumers.Hanesbrands' all-cash offer of $23.50 per share represents a premium of 23 percent to Maidenform's closing price on Tuesday. Maidenform's shares had closed most of the gap in early trading, while Hanesbrands' were trading at an all-time high.Hanesbrands said it would fund the purchase, its biggest ever, with a mixture of cash on hand and loans. Chief Executive Richard Noll said Maidenform's brands, which include Lilyette, would fit well with younger, average-figure consumers."(They) are very complementary to our brands, such as Playtex and Bali, that fit much better with the over-35, full-figured consumer," Noll said on a conference call with analysts.
Hanesbrands Inc. is a consumer goods company with a portfolio of apparel brands, including Hanes, Champion, Bali, Playtex, Just My Size, L?eggs, barely there, Wonderbra, Gear for Sports, Stedman, Zorba, Rinbros, Sol y Oro, Outer Banks and Duofold. Shares of HBI traded higher by 7.35% or $3.92/share to $57.28. In the past year, the shares have traded as low as $28.17 and as high as $54.15. On average, 716540 shares of HBI exchange hands on a given day and today's volume is recorded at 1531754.
Maidenform Brands, Inc. is a global intimate apparel company that designs, sources and markets a range of intimate apparel products, including bras, panties and shapewear. Shares of MFB traded higher by 22.84% or $4.36/share to $23.45. In the past year, the shares have traded as low as $16.50 and as high as $26.37. On average, 108433 shares of MFB exchange hands on a given day and today's volume is recorded at 4182151.
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