On Wednesday, HanesBrands announced that it plans to sell its sportswear brand, Champion, to Authentic Brands Group for $1.2 billion. This decision will allow HanesBrands to streamline its business and focus on its innerwear categories. The deal includes the potential for an additional contingent cash consideration of up to $300 million based on achieving certain performance thresholds.
The acquisition of Champion by Authentic Brands will enable the company to enter the fast-growing sportswear market, as more customers are choosing casual and athleisure clothing that is both comfortable and stylish. Authentic Brands already owns a wide range of clothing brands, such as Aeropostale, Eddie Bauer, Forever 21, and Ted Baker. HanesBrands has expressed its intention to concentrate on expanding its innerwear category and investing more in its brands like Hanes, Bonds, Maidenform, and Bali.
Once the deal is finalized, expected in the second half of 2024, HanesBrands will continue to provide certain transition services for Champion, including operating the business in specific regions. The company anticipates net proceeds of approximately $900 million from the transaction.
