Fresh from its agreement to buy Champion Europe for about €200 million (see our previous issue), Hanesbrands announced the acquisition of Pacific Brands for an enterprise value of $800 million, a regular dividend and a new stock buyback program worth up to $1 billion at today's prices. The purchase price for Pacific Brands is equal to just over ten times projected Ebitda. Pacific Brands is a major Australian producer of underwear and home textiles whose business will fit well with Hanesbrands' large intimate apparel segment. It should also help push sales of Champion products in Australia. The new investments were reported after a first quarter in which Hanesbrands raised its net income by 52.5 percent to $80.3 million on 0.8 percent higher revenues of $1,219 million. Activewear sales rose by 2.8 percent to $309.5 million, generating a 5 percent increase in operating income to $32.6 million.

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