Hanes Brands (NYSE: HBI) is buying Maidenform Brands Inc. (NYSE: MFB) for about $575 million.

The purchase price works out to $23.50 per share. Maidenform’s stock closed at $18.94 on July 23, before the deal was announced.

Boards from both companies have approved the deal unanimously, which is subject to approval from Maidenform shareholders and regulators.

Iselin, N.J.-based Maidenform, which had been considering a sale, sells bras, shape wear and other intimate apparel through the Maidenform, Flexees, Lilyette, Self Expressions and Sweet Nothings brands.

“This business is a natural fit into our core business and meets all of our acquisition criteria,” says Hanes chief executive Richard Noll in a statement.

Hanes, headquartered in Winston-Salem, N.C., makes intimate apparel brands Playtex, Bali, Just My Size, Hanes, Barely There, Wonderbra, Champion and L’eggs.

Maidenform sources its products from third parties, while Hanes owns manufacturing operations, which it expects to use for Maidenform.

Hanes will fund the deal with cash on hand and a revolving credit facility, which has been amended to increase the limit to $1.1 billion and decrease the interest rate by 25 basis points.

The deal is expected to close in the fourth quarter.

Goldman Sachs & Co. (NYSE: GS) served as Hanes’ financial adviser, while King & Spalding LLP served as the company’s legal counsel.

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