The perfect fit: Wonderbra maker to buy Maidenform

Two of the world’s top bra makers are coming together in the biggest development in the US$11.5 billion underwear industry in years.

Hanesbrands, which makes the Wonderbra, said Tuesday that it agreed to buy bra and underwear company Maidenform Brands for about US$547 million. The deal would add brands like Maidenform, Flexees and Self Expressions to the Hanesbrand roster that includes Playtex, Bali, Champion, Wonderbra and its namesake Hanes.

The merger comes as traditional bra and underwear makers are facing tough competition from speciality stores such as Victoria’s Secret that focus on frilly designs and newer rivals like Spanx that make shapewear that promises to control and smooth out bulges.

“Maidenform has great brands that consumers trust,” said Hanes chief executive Richard Noll. “Combining the complementary strengths of both companies creates a lot of growth opportunities.”

Bras, which are as much about fashion as they are about function these days, are the biggest sellers in the intimate apparel arena, making up about 48 per cent of all sales, according to research firm IBIS world. Panties make up about 24.8 per cent of sales, sleepwear makes up about 22 per cent and shapewear 5.2 per cent, according to IBIS figures.

The bra and underwear industry has growth spurts when new trends come along. Think: boy shorts three years ago, for example, or shapewear over the past two years. But when it comes to what they’re wearing underneath their clothes, Americans have cut back on their shopping habits since the recession.