Hanes: Will Soon Close Maidenform Acquisition

HanesBrands has reaffirmed its 2013 financial guidance and said that its acquisition of Maidenform, intention of which it announced in July, “is expected to close by Tuesday, Oct. 8, 2013, pending approval by Maidenform stockholders voting at a special meeting on Thursday, Oct. 3, 2013, and satisfaction of other customary closing conditions. The acquisition has already received regulatory clearance.”

Hanes repeated “its full-year 2013 guidance for sales of approximately $4.55 billion; operating profit of $550 million to $575 million; EPS of $3.50 to $3.65; and free cash flow of $450 million to $550 million. The company’s guidance does not reflect any potential contributions or impact from the acquisition of Maidenform Brands, Inc..”

Hanes chairman and CEO Richard Noll declared, as part of the announcement, “We continue to track to our expectations for significant margin expansion in 2013 with strong year-over-year growth for operating profit, EPS and cash flow. Back-to-school sales started softer than desired, as many retailers have announced, but we saw sell-through trends for our products improve in late August and early September.”

Hanes announced July 24, 2013, that it had entered into a definitive agreement to acquire Maidenform Brands for $23.50 per share in what it describes as “an all-cash transaction valued at approximately $575 million on an enterprise-value basis.”