Sara Lee to Buy Playtex Apparel for $575 Million

Sara Lee Corp. will acquire Playtex Apparel Inc., the country’s top name in brassieres, in a deal valued at more than $575 million, the companies announced Thursday.

In combination with its own lines, Bali, Hensen and Hanes Her Way, the deal will make Chicago-based Sara Lee the biggest maker of brand-name women’s intimate apparel in the United States with about 20% of the domestic bra market, company officials said.

Separately, Sara Lee reported a 19% increase in net income for the fourth quarter.

Sara Lee will acquire privately held Playtex Apparel by assuming its $400-million debt load and giving its owners 4 million shares of Sara Lee stock.

The deal, expected to close within two months, does not include Playtex Family Products Corp., an independent privately owned company that markets tampons, infant feeding systems, gloves, hair-care products and toothbrushes.

“Playtex Apparel complements our personal products businesses and allows us to build on our worldwide foundations business,” said spokeswoman E. Denise Stovell.

More than half of Playtex Apparel’s $480 million in fiscal 1991 sales were made outside the United States.