Winston-Salem based HanesBrands is buying bra maker Maidenform for approximately $547 million. The deal would add several brands to the company's already existing line of Playtex, Wonderbra and Hanes. The company hopes the acquisition will increase profits as well as production.
“There's a little bit of duplication anytime you have two publicly traded, independent companies coming together,” says HanesBrands' spokesman Matt Hall. “But for the most part we're looking at taking the Maidenform production, which is not out-sourced to third party contractors, at least partially into the HanesBrands supply chain.”
Maidenform has 1200 employees and is based in New Jersey. Hall says a full merger plan has not yet been finalized. HanesBrands paid almost $24 per share to purchase the company. That represents a 23 percent premium to Maidenforms' closing stock price on Tuesday.
Both companies' boards unanimously approved the acquisition, which is expected to close in the fourth quarter. It still needs approval from Maidenform shareholders.