Hanesbrand will add Pacific Brands labels such as Bonds and Berlei to its portfolio.

Hanesbrand will add Pacific Brands' labels such as Bonds and Berlei to its portfolio.

Underwear and activewear maker HanesBrands has completed its US$800m acquisition of Australia's leading underwear and intimates firm Pacific Brands.

The company first announced the deal, its sixth in the past three years, in April. 

Hanesbrands to buy Australia's Pacific Brands for $800m

The acquisition adds Australia and New Zealand to the list of countries where Hanesbrands holds the number one or two market share position for underwear, intimate apparel or hosiery. Those include the US, Canada, Mexico, Brazil, France, Germany, Italy, Spain and South Africa.

Hanesbrands, whose brands include Hanes, Champion, Playtex, Maidenform and Wonderbra, will add Pacific Brands' labels such as Bonds, Australia's top brand of underwear, babywear and socks, and Berlei, the country's top sports bra brand, to its portfolio.

The acquisition is also expected to result in significant savings through the use of Hanes' large-scale, low-cost global supply chain.

Pacific Brands sources most of its underwear and intimate apparel production from third-party manufacturers, while Hanes relies primarily on company-owned manufacturing at facilities in Central America and the Caribbean. The deal will also add to Hanes' global product design, development and innovation capabilities that span the Americas, Europe and the Pacific Rim.

Supply chain the "secret sauce" for Hanesbrands

"Pacific Brands with its iconic century-old and fast-growing Bonds brand is a great addition to our strong market-leading portfolio spanning the Americas, Europe and Asia-Pacific that is supported by a world-class company-owned global supply chain," said Hanes COO Gerald Evans Jr.

"We are adding a top-notch management and marketing team led by CEO David Bortolussi that will help serve as a catalyst for continued growth and value creation into the foreseeable future."

Annual sales for Pacific Brands' core Underwear and Sheridan divisions are approximately AUD800m (US$600m). 

The acquisition is the second that Hanes has completed in the past two weeks. On 30 June, the company completed its EUR200m (US$223m) acquisition of Champion Europe, which owns the trademark for the Champion brand in Europe, the Middle East and Africa.

HanesBrands completes EUR200m Champion Europe deal

Last month Hanes lifted its full-year forecast for net sales of US$6.15bn to $6.25bn, up from a previous guidance of $5.8bn to $5.9bn. 

Hanesbrands ups FY guidance on acquisitions