Maidenform, Inc. (NYSE: MFB) today announced that it has entered into a definitive agreement with HanesBrands (NYSE: HBI) pursuant to which Hanes will acquire all of the outstanding shares of Maidenform for $23.50 per share in cash, representing a transaction value of approximately $575 million. The transaction price represents a premium of approximately 23% to yesterday’s closing share price and a premium of approximately 30% to the 30-day average trading price. The transaction, which has been unanimously approved by the Maidenform Board of Directors, is expected to close in the fourth quarter of 2013.
By combining with Hanes, Maidenform will become part of a larger, more diverse apparel company with strong cash flows and a portfolio of iconic brands, well-positioned to reach new and existing customers around the globe. Maidenform will be able to accelerate product innovation and enhance its marketing and sales strategy to further penetrate important market segments across channels and geographies. In addition, Hanes’ robust global infrastructure and supply chain will allow Maidenform to maximize its value to retailers and consumers.
Maurice S. Reznik, Chief Executive Officer of Maidenform, said, “Maidenform and Hanes are two companies that share rich histories, world-class and complementary brands, and promising futures. Not only does this all-cash transaction provide our shareholders with an immediate and substantial premium, it will also provide necessary resources and infrastructure to grow our business. This transaction is an important affirmation of the Maidenform brands, our prospects and the hard work and dedication of our team.”
Karen Rose, Chairman of Maidenform’s Board of Directors, said, “After thoroughly evaluating potential strategic options for the company, we determined that the acquisition of Maidenform by Hanes is in the best interests of our shareholders. We are thrilled to have reached this agreement.”
Richard A. Noll, Chairman and Chief Executive Officer of Hanes, said, “We are looking forward to Maidenform joining the Hanes family. Maidenform has great brands that consumers trust. Combining the complementary strengths of both companies creates a lot of growth opportunities.”