Pacific Brands Limited (ASX: PBG) has received a $1.1 billion takeover from NYSE-listed Hanesbrands Inc.

Pacific Brands is the owner of Bonds, Sheridan Tontine, Berlei, Hush Puppy and much more.

Hanesbrands Inc is a New York-listed public company worth the equivalent of $14.3 billion and owns brands such as Champion, Hanes and more.

This morning, Pacific Brands announced it had received a $1.15 per share takeover offer from Hanesbrands, valuing the company at $1.1 billion.

Pacific Brands says the deal represents a 22% premium to its last closing price and compares favourably to prior corporate transactions in the global underwear and basic apparel markets.

As part of the all-cash proposal, Pacific Brands says it intends to pay a 9.4 cents per share fully franked dividend, enabling eligible shareholders to receive up to four cents per share in franking credits. If successful, this amount would be deducted from the cash consideration.

While the deal is expected to have minimal impact on employee numbers, Hanesbrands is expected to sell the Tontine and Dunlop Flooring businesses, or else Pacific Brands will retain them.

“Pacific Brands owns Australia’s leading underwear and home furnishing brands,” Pacific Brand’s Chairman, Peter Bush, said. “HanesBrands has recognised the work done over the past two years that has seen the Board and management team under CEO David Bortolussi’s leadership reshape and simplify the business to focus on our highest quality brands and improve operational performance.”

The Pacific Brands’ board unanimously recommended the deal.

“We believe the 100% cash proposal from HanesBrands is compelling and represents an attractive premium to our long term average share price and the implied F16 EV / EBITDA acquisition multiple of 12.0x compares favourably to the multiples paid in other comparable transactions,” Mr Bush added. “The HanesBrands proposal represents an opportunity for Pacific Brands shareholders to realise attractive value for their shares and to de-risk future growth opportunities available to the business.”

The deal is subject to limited conditions, but not subject to financing or due diligence.

Foolish takeaway

Late in May, shareholders can expect to receive the mailed Independent Expert’s report and specific details on the deal. Pacific Brands believe that if the deal goes ahead, the total shareholder return from holding its shares in FY16 would be 265%, and is at the highest price in five years.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.