(Reuters) - Hanesbrands Inc (HBI.N) said it will buy privately held GearCo Inc, which sells sporty casuals to college-goers, for about $55 million in cash, sending its shares up 8 percent Tuesday morning.

Hanesbrands operates Champion Sportwear

Hanesbrands, whose brands include Hanes, Champion, Playtex and Wonderbra, will also assume $170 million of debt, which it expects to retire.

The deal for Gear For Sports, which sells clothes under the Gear for Sports label, Hanesbrands' Champion label, and for Under Armour Inc (UA.N), will add about 20 cents to Hanesbrands' earnings per share in the first year and 30 cents per share in the second year after closing, it said.

The deal is expected to close in the fourth quarter.

"We have significant growth synergies in both the collegiate bookstore channel and our existing retail channels and can take advantage of our low-cost global supply chain," Hanesbrands Chief Executive Officer Richard Noll said.

Gear For Sports reported sales of $225 million in its fiscal 2010 year ended in June.

Hanesbrands expects to use 2010 free cash flow to pay for the deal, and the deal will not be negative to fourth-quarter earnings as it requires no restructuring or write-offs.

Shares of the company were up 5 percent at $26.88 in morning on the New York Stock Exchange. They touched a high of $27.85 earlier in the session.

(Reporting by Viraj Nair and Nivedita Bhattacharjee in Bangalore; Editing by Gopakumar Warrier)