WINSTON-SALEM, N.C.--(EON: Enhanced Online News)--HanesBrands (NYSE: HBI), a leading worldwide marketer of underwear, intimate apparel and activewear, today announced that it has entered into definitive agreements to sell its Australian Dunlop Flooring and Tontine pillow businesses as planned. The businesses are noncore operations acquired as part of Hanes' July 2016 purchase of Pacific Brands Limited of Australia.
“This is a good transaction for all involved and will provide clarity and growth potential for our Dunlop Flooring and Tontine employees. We wish them the best in the future.”
Hanes has agreed to sell the business and assets of Dunlop Flooring in an all-cash transaction for AUD34 million (US$25 million) to United Kingdom-based Victoria PLC (LSE: VCP), a publicly traded international designer, manufacturer and distributor of floor coverings. Dunlop Flooring, which manufactures and distributes underlay and hard flooring, had revenues of AUD51 million and EBITDA of AUD6 million for the fiscal year ended June 30, 2016, the reporting period ended prior to the Hanes acquisition of Pacific Brands.
Hanes has agreed to sell the Tontine pillow and quilt business and assets in an all-cash transaction for AUD14 million (US$10 million) to John Cotton Group, a privately held international pillow and quilt manufacturer based in the United Kingdom. Tontine had revenues of AUD44 million and EBITDA of AUD2 million for the fiscal year ended June 30, 2016.
The sales are expected to be completed in the first quarter of 2017, pending customary closing conditions. When Hanes acquired Pacific Brands, the leading underwear and intimate apparel company in Australia, the company announced that it intended to divest the noncore Dunlop Flooring and Tontine pillow businesses.
Since the acquisition of Pacific Brands, Hanes has reported results for the Dunlop and Tontine businesses on a discontinued operations basis.
“We are pleased to reach a timely agreement to sell Dunlop and Tontine operations to international leaders in their respective industries,” said Hanes Chief Executive Officer Gerald W. Evans Jr. “This is a good transaction for all involved and will provide clarity and growth potential for our Dunlop Flooring and Tontine employees. We wish them the best in the future.”
Cautionary Statement Concerning Forward-Looking Statements
Statements in this press release that are not statements of historical fact, including those regarding the company’s planned divestiture of its Dunlop Flooring and Tontine pillow businesses, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on current intent, beliefs, plans and expectations and involve risks and uncertainties that may cause actual results to differ materially from HanesBrands’ historical experience and present expectations or projections. These risks and uncertainties include the risks identified from time to time in HanesBrands’ most recent Securities and Exchange Commission reports, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, registration statements, press releases and other communications. Any forward-looking statement speaks only as of the date on which such statement is made, and HanesBrands does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement was made.
HanesBrands, based in Winston-Salem, N.C., is a socially responsible leading marketer of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia/Pacific under some of the world’s strongest apparel brands, including Hanes, Champion, Maidenform, DIM, Bali, Playtex, Bonds, JMS/Just My Size, Nur Die/Nur Der, L’eggs, Lovable, Wonderbra, Berlei, and Gear for Sports. The company sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and activewear produced in the company’s low-cost global supply chain. More information about the company and its corporate social responsibility initiatives, including environmental, social compliance and community improvement achievements, may be found at www.Hanes.com/corporate.