Hanes Australasia has bought Bras N Things from Brett Blundy’s BB Retail Capital in a deal worth $500 million.

The all-cash transaction is valued at A$500 million on an enterprise-value basis. The purchase price is approximately 10 times 2017 EBITDA and is expected to be less than 8 times EBITDA after supply chain and revenue synergies.

The speciality retailer has approximately 170 stores across Australia, New Zealand and South Africa and in 2017 had net sales of approximately A$180 million with a 3-year compound annual growth rate of 11 percent.

Current Bras n Things CEO George Wahby and his management team will continue to lead the business from its existing premises in Sydney.

“Bras N Things and Hanes have many similarities including shared values and a focus on style, comfort and quality,” he said.

“Hanes has made it clear that they intend to work with the Bras N Things team to support and invest in delivering the company’s growth strategy, providing an opportunity to leverage Hanes’ scale and capability.”

Hanes Australasia president and managing director David Bortolussi said the brand was a strategic and cultural fit.

“We have acquired Bras N Things primarily for its strong brand and market position in the attractive intimate apparel category, providing both category and channel diversification to our business,” he said.

“The team has delivered impressive sales and earnings growth over recent years, and we look forward to investing in and continuing that growth.  It’s exciting to have a retailer of this size and calibre join our group.”

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