Bonds maker Pacific Brands now owned by US giant Hanesbrands

The new US owner of Pacific Brands “respects the Aussie DNA” in the iconic clothing firm’s most famous products.

Pacific Brands CEO David Bortolussi.

Pacific Brands, the iconic Australian company that traces its history back to manufacturing Dunlop bicycle tyres in 1893 and which grew quickly to make rubber boots and invent the famous Dunlop Volley sneaker, is now owned by a US company after shareholders voted overwhelmingly in Melbourne today to support the $1.1 billion takeover by Hanesbrands.

The vote gives the US company control of some of Australia’s most popular underwear brands, such as Bonds and Berlei.

More than 99.7 per cent of shareholders voted to accept the $1.15 per share takeover bid by US-based Hanesbrands which owns the WonderBra and Playtex brands.

Pacific Brands chief executive David Bortolussi and chairman Peter Bush addressed shareholders for the last time at a meeting in Melbourne this morning, as the vote was taken and Pacific Brands was passed into the ownership of Hanesbrands.

After the meeting, Mr Bortolussi told The Australian it was a good deal for shareholders and would greatly benefit the company as it was folded into HanesBrands’ global operations.

“I still believe this is a good outcome for our business going forward, our people and our brands, I think Hanes being the global leaders in the underwear category really will strengthen our business and allow us to execute everything we wanted to do and more.

“I think it’s a real positive for Bonds, Sheridan and Berlei and the rest of our brands and they are very respectful of the Australian DNA in those brands and they certainly don’t want to change that.’’

Mr Bortolussi said he intended to stay on board as the local CEO, reporting to Hanesbrands in the US.

Hanesbrands intends to divest the Tontine pillow and bedding business as well as Dunlop Flooring.

A scheme booklet for the bid released in May reported that Hanesbrands’ $1.1 billion takeover offer for Pacific Brands was at the upper end of a valuation range formulated by independent experts and should be supported by shareholders.

“Hanesbrands can provide Pacific Brands with unique supply chain benefits and the opportunity to accelerate the growth of famous brands such as Bonds and Sheridan,’’ Mr Bush told shareholders in May.

Pacific Brands’ most well-known underwear and apparel brands include Bonds, Berlei, Jockey and Razzamatazz

Hanesbrands offered total cash payments of $1.15 per Pacific Brands share, which will comprise a fully franked special dividend of 0.94c a share and cash consideration of $1.056 a share.

Grant Samuel has advised the valuation of Pacific Brands is between $1.10 and $1.23 a share. But the intention to include the special 0.94c a share special dividend would deliver additional value of up to 4c a share for shareholders able to realise the full benefit of franking credits.