UPDATE 1-Hanesbrands to buy underwear rival Maidenform Brands
* Deal for $23.50 per share, premium of 23 pct
* Deal to add to EPS within first year of close
* To fund deal with cash on hand, borrowings
July 24 (Reuters) - Hanesbrands Inc, whose labels include the Wonderbra, said it will buy lingerie company Maidenform Brands Inc for $547 million to boost its product line up.
The offer of $23.50 per share represents a premium of 23 percent to Maidenform's closing price on Tuesday.
Hanesbrands expects the deal to add to earnings per share (EPS) within the first year of close and add 60 cents to EPS annually within three years.
"This business is a natural fit into our core business and meets all of our acquisition criteria," said Hanes Chief Executive Richard Noll.
The company said the deal will boost its intimate apparel portfolio by adding Maidenform's Flexees, Lilyette, Self Expressions and Sweet Nothings labels to its Playtex, Barely There, Wonderbra and Hanes brands.
Hanesbrands said it expects to fund the deal with cash on hand and borrowings under its credit facility.
Goldman Sachs gave financial advice to Hanes, while King & Spalding LLP is served as legal counsel.