NEW YORK (TheStreet) -- Shares of Hanesbrands Inc. (HBI) are up 5.49% to $93.40 in pre-market trading on Wednesday, after it said it will buy former sister company DBApparel in a deal valuing it at $545 million.
Hanesbrands said the deal is expected to add more than $875 million in annual net sales and about $125 million in adjusted operating profit within three or four years.
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Separately, TheStreet Ratings team rates HANESBRANDS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HANESBRANDS INC (HBI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, good cash flow from operations and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."