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MELBOURNE - Australian clothing and bedding firm Pacific Brands said yesterday it would acquire workwear supplier Yakka Group for an undisclosed sum, and posted better first-half profit on a recovery in underwear sales.
The news lifted the company's shares nearly 5 per cent to a 14-month high, as investors greeted a deal that will help boost Pacific Brands' underperforming outerwear division.
Analysts said the deal could be worth between A$200 million ($225 million) and A$250 million.
Yakka, the largest supplier of industrial and corporate workwear in Australia and New Zealand, has A$300 million in annual sales. It has been family owned for 70 years.
Pacific Brands' net profit for the six months to end-December rose 6.1 per cent to A$53.8 million, slightly below market expectations.
Its brands include Berlei and Bonds, Holeproof, Clarks shoes, and Dunlop sporting goods.
- REUTERS
