Background: Bonds is one of Australia’s most recognisable underwear brands, founded back in 1915 and backed over the years by everyone from Pat Rafter to Miranda Kerr. It became part of Pacific Brands in the 1980s alongside Sheridan and Berlei, before US clothing giant Hanesbrands snapped up the portfolio in 2016 for $1.1 billion, then added Bras N Things in 2018 for $500M.

What happened: That Australian portfolio, including Bonds, Sheridan, Berlei and Bras N Things was generating more than $1.1 billion in annual revenue for Hanesbrands. But in August last year, Hanesbrands itself was acquired globally by Canadian group Gildan Activewear for $2.2 billion USD. From day one, Gildan flagged the Australian business as a potential sale… and now it’s officially on the sale block.

What else: The timing isn’t random. Hanesbrands Australia’s profit from operations has fallen sharply, dropping around 50% over the past year. With the new owner focused on reshaping the group, the Australian arm has become an obvious candidate for a clean break.

What's the key learning?

💡Acquirers rarely buy businesses to keep everything the same. They come in with a clear idea of what they want to scale... and what no longer fits.

💡Underperforming assets get cut quickly. With profits sliding from roughly $99 million to $42 million, selling Hanesbrands Australia seems like it has been an easy decision.

💡Gildan didn’t buy Hanesbrands to run an Aussie retail empire... so selling it frees up attention for its core North American business.