- Prachi Singh |
Announcing the acquisition of Alternative Apparel, HanesBrands said that it expects to report third-quarter net sales of approximately 1.80 billion dollars, EPS of approximately 0.55 dollar, and adjusted EPS of about 0.60 dollar – consistent with the company’s previous guidance. Hanes also expects year-to-date net cash from operations of approximately 330 million dollars.
“We met our goal of returning to organic growth, and we continued to generate strong operating cash flow,” said Hanes Chief Executive Officer Gerald W. Evans Jr. in a statement, adding, “Our sales and EPS results, driven by stronger-than-expected international growth, are expected to be consistent with our guidance.”
Hanes acquires Alternative Apparel
Hanes said that it has purchased privately held Alternative Apparel in an all-cash transaction valued at approximately 60 million dollars on an enterprise basis on October 13, 2017. The company expects Alternative Apparel, based in Norcross, Georgia, to have full-year 2017 net sales of approximately 70 million dollars.
“This is an exciting acquisition that supports our activewear growth strategy. Adding the Alternative brand and product lineup further diversifies our sales mix as we emphasize growth across all channels, including online,” added Evans.
Hanes further states that the post-synergy purchase price multiple is expected to be approximately 3.5 times projected EBITDA. Hanes funded the acquisition with cash on hand and short-term borrowings on its revolving credit facility.
Alternative Apparel, founded in 1995, sells Alternative brand better basic T-shirts, fleece and other tops and bottoms. The company operates three Alternative stores – in Venice, California; SoHo, New York; and San Francisco apart from ecommerce platform Alternativeapparel.com.
Alternative Apparel CEO Evan Toporek will remain with Hanes to continue leading the business out of Norcross. “We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform,” Toporek said.
Picture:Alternative Apparel blog