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Stock Market & Financial Investment News

News Breaks
March 22, 2013
08:33 EDTHBIHanesbrands coverage resumed with a Conviction Buy at Goldman
Target $50.
News For HBI From The Last 14 Days
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February 25, 2015
09:15 EDTHBIHanesbrands price target raised to $150 from $127 at Janney Capital
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February 24, 2015
16:22 EDTHBIHanesbrands to acquire Knights Apparel at enterprise value of $200M
HanesBrands announced that it has entered into a definitive purchase agreement to acquire Knights Apparel, a seller of licensed collegiate logo apparel in the mass retail channel. Hanes is purchasing Knights, which is forecast to have sales of approximately $180M for the full-year 2015, from affiliates of Merit Capital Partners. The all-cash transaction values Knights at approximately $200M on an enterprise-value basis, or approximately 8 times expected full-year 2015 EBITDA. The post-synergy multiple is expected to be approximately 4˝ times EBITDA. Hanes intends to fund the acquisition with cash on hand and short-term borrowings on its revolving credit facility. The acquisition, which is subject to antitrust review and other customary closing conditions, is expected to close early in the second-quarter 2015. Assuming an early second-quarter close, the acquisition is expected to add to the company’s previously stated presplit 2015 financial guidance by approximately $160M in net sales, approximately $18M in adjusted operating profit excluding actions, and approximately 10c to presplit adjusted earnings per share excluding actions. Within two to three years when full synergies and benefits are realized, the purchase of Knights is expected to contribute approximately 30c of presplit annual adjusted EPS.

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