Gildan Activewear's Sale of Hanesbrands Australia Helps Leverage, Opens Door to Buybacks
Dow Jones07-30
9:12 ET -- Gildan Activewear's $490 million divestiture of Hanesbrands Australia should help with some post-acquisition balance-sheet cleanup and give it the leeway to launch a buyback program. The company put the unit up for sale late last year, and it has now agreed to sell the business to BBFIT Investments, an associated entity of private investment firm BB Retail Capital. The company plans to use the proceeds to pay down a portion of its debts, bringing it back to the midpoint of its target leverage framework of 1.5-2.5 times net debt to adjusted Ebitda. When it hits that point, the company also intends to launch a share repurchase program.
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