An affiliate of Sun European Partners is to sell its investment in DBApparel, the designer and manufacturer of branded ladies and men’s intimate apparel, to HanesBrands for EUR400m.
The proposed transaction is subject to customary approvals, such as the completion of the consultation process with the employee representatives.
Headquartered in France, DBA’s brands include DIM, Playtex, Wonderbra and Shock Absorber. The company has a strong presence in France, Germany, Italy, Spain, UK, Belgium and a number of emerging markets. Its products are sold through traditional trade channels including department stores, retailers, wholesalers and mail order as well as specialised chain stores and mass market retailers.
DBA was acquired by an affiliate of Sun European Partners from the Sara Lee Corporation in 2006. Over the last eight years, a number of operational improvements have been made within the business which have delivered improved market share, greater brand awareness and overall improved financial performance.
Lionel de Posson, vice president at Sun European Partners, says: “We are very proud to have successfully contributed to the strategic repositioning and operational transformation of DBA, creating a robust business which is now in good financial health. We believe that this proposed transaction, which would bring together two complementary geographical market leaders, would represent a key milestone in the turnaround strategy that we have helped to implement at DBA in recent years. We look forward to identifying similar investment opportunities in France in the future.”
“Purchasing DB Apparel would represent another great acquisition for Hanes and a good use of our ample cash flow to generate significant shareholder value,” says Hanes chairman and chief executive officer Richard A Noll. “We would be able to reunite two great companies to create significant growth and margin-expansion opportunities.”
