HanesBrands announced on Wednesday that it has sold its sportswear brand Champion to Authentic Brands Group for $1.2 billion. This move is part of the company’s efforts to streamline its operations and focus more on its core innerwear categories. The deal could be worth up to $1.5 billion, with an additional contingent cash consideration of up to $300 million based on the achievement of certain performance thresholds.
The acquisition of Champion will help Authentic Brands Group expand into the fast-growing sportswear market, catering to customers who increasingly prefer comfortable and stylish athletic clothing. Authentic Brands Group already owns a diverse portfolio of clothing brands, including Aeropostale, Eddie Bauer, Forever 21, and Ted Baker.
HanesBrands plans to concentrate on growing its innerwear category and increasing investments in its existing brands, including Hanes, Bonds, Maidenform, and Bali. The completion of the deal is expected in the second half of 2024. Following the acquisition, HanesBrands will provide transition services for Champion, operating the brand in select regions. The innerwear company anticipates net proceeds of about $900 million from the transaction.
