Models perform on the catwalk in 'Bonds' underwear during the Hot In The City Intimates Show at the inaugural Australian Fashion Week in Sydney on August 15, 2008. The event highlights children's wear, swimwear, lingerie, and street fashion from Australia's leading designers. AFP PHOTO/Torsten BLACKWOOD

American clothing company, HanesBrands, has made a AU$1.1 billion takeover offer for underwear company, Pacific Brands. The all cash offer would give Pacific Brands shareholders AU$1.15 per share, with the board in unanimous agreement on the offer.

We believe the 100 per cent cash proposal from HanesBrands is compelling and represents an attractive premium to our long term average share price,” said Peter Bush, chair, Pacific Brands.

With both company boards in unanimous agreement, the acquisition is only subject to Pacific Brands shareholder approval and other customary closing conditions.

The deal is expected to close in the third quarter of 2016.