Reuters
Wonderbra owner Hanesbrands Inc will spend $547 million to buy rival Maidenform Brands Inc, where sales have been flagging, and expand its range of lingerie for younger consumers.
* $547 mln deal for $23.50 per share, premium of 23 pct
* Hanesbrands to fund deal with cash on hand, loans
* Maidenform shares rise 22 percent
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.