Sun European Partners, LLP (“Sun European Partners”) today announces that one of its affiliates intends to sell its investment in DBApparel (“DBA”), the designer and manufacturer of branded ladies and men’s intimate apparel, to HanesBrands Inc (“HBI”) for an enterprise value of €400M. The proposed transaction is subject to customary approvals, such as the completion of the consultation process with the employee representatives.
Headquartered in Rueil-Malmaison, France, DBA is a market leader in the design, manufacture and distribution of branded intimate apparel including world-renowned brands such as 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. These measures, combined with the support provided by the affiliate of Sun European Partners, have enabled DBA to make a solid recovery.
Lionel de Posson, Vice President at Sun European Partners, said, “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,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “We would be able to reunite two great companies to create significant growth and margin-expansion opportunities.”
About Sun European Partners, LLP
Sun European Partners, LLP is a leading private investment advisory firm, combining the financial skills and resources of a traditional private equity firm with the operational insight and expertise of a world class operating team. The firm focuses on market-leading companies that can benefit from its in-house professionals, resources, and expertise in their efforts to materially improve operating performance. Affiliates of Sun European Partners, LLP have invested in more than 335 companies worldwide since 1995, with combined sales in excess of €35 billion. Further information on Sun European Partners, LLP is available at www.SunEuropeanPartners.com
