WINSTON-SALEM, N.C. — May 4, 2011 — HanesBrands (NYSE:HBI) has expanded its global Champion
activewear brand in the Eastern Hemisphere by acquiring the assets of TNF Group Pty Ltd, a major
activewear supplier serving leading Australian sportswear retailers.
The acquisition of TNF, which was already selling HanesBrands’ Champion activewear products
in Australia and New Zealand under a license and distribution agreement, expands HanesBrands into
the outerwear segment in Australia, complementing its Playtex intimate apparel and emerging Hanes
basic comfort apparel businesses there.
Established in 2002, TNF Group’s activewear sales last year were approximately $20 million
(U.S.), including the licensed Champion sales. HanesBrands bought the TNF assets for $9 million, or
less than seven times earnings before interest, taxes, depreciation and amortization.
HanesBrands’ strategy for its International segment businesses, which contributed 12 percent
of total company sales last year primarily in fast-growing countries in the Americas and Asia, is
to focus on the core categories of basic apparel, intimate apparel, and activewear using its global
brands of Hanes, Wonderbra, Playtex and Champion. With the TNF assets, the company expands its
Champion activewear brand that is already established in Japan and elsewhere in Asia.
Already with strong results in the first quarter, Hanes expects its 2011 International sales
growth to be in the high teens or better. Last year, International sales increased 16 percent.
“Our accelerating international growth is duplicating our success in the United States by
increasing market share through strong consumer brands in core categories supported by our low-cost
global supply chain,” said Hanes Chairman and Chief Executive Officer Richard A. Noll. “This model
should allow us to sustain substantial International growth for years.”
The acquired TNF business sells activewear and sportswear to sports and retail stores under
the Champion, Leluu, Performax, and Track N Field brands. It also sells custom sports clothing to
Australian private schools, and operates three retail stores.
Approximately 60 employees, primarily in sales, service, production, administration and
distribution, will join HanesBrands, and management will remain in place at offices in Scoresby,
“We are excited to add the TNF business and team to create significant growth opportunities
in Australia and New Zealand,” said Gerald Evans, co-operating officer and president of
international businesses for HanesBrands. “TNF’s activewear business, which had continually
expanded Champion sales since the 2009 license agreement, has an outstanding management team and
workforce that are the best in their category and fit well with our growth culture.”
The acquisition will not materially affect HanesBrands’ 2011 guidance for total sales of $4.9
billion to $5 billion and earnings per diluted share of $2.70 to $2.90.
Cautionary Statement Concerning Forward-Looking Statements
Statements in press releases, made at investor conferences, or contained in certain other
written, electronic and oral communications that are not statements of historical fact 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, including those regarding the effect of the TNF
Group acquisition on the company’s financial results, the company’s long-term goals, and trends
associated with the company’s business. These forward-looking statements, if made, are based on
current intent, beliefs, plans and expectations, and involve risks and uncertainties that could
cause actual future results, performance or developments to differ materially from those described
in or implied by such forward-looking statements, including risks related to integrating TNF Group
and the failure to realize anticipated synergies or operational efficiencies over time. The company
cautions investors not to place undue reliance on any forward-looking statements and encourages
investors to review risk factors contained in the company’s most recent Securities and Exchange
Commission reports, including our 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. The
company undertakes no obligation to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future operating results over
Posted on May 20, 2011
Source: HanesBrands/Business Wire