HanesBrands to Sell Champion to Authentic Brands for $1.2B USD
Using the proceeds from the sale to reduce debt and focus on its underwear business.
HanesBrands has announced that it’ll be selling Champion to Authentic Brands Group in a deal valued at $1.2 million USD. The deal could reach up to $1.5 billion USD through an additional $300 million in cash, contingent on the brand reaching performance thresholds.
The move arrives as part of HanesBrands’ plan to continue focusing on its underwear business, spearheaded by its other brands Hanes, Bonds, Maidenform and Bali.
Following a steady decline in sales, culminating with a 17% year-over-year decrease in Q1, HanesBrands began looking into strategic options for Champion.
For Authentic Brands – the owner of Aeropostale, Eddie Bauer and Forever 21 – the acquisition will allow them to lean more into the sportswear space.
HanesBrands is expected to receive net proceeds of around $900 million USD. The sale will help the company to reduce their debt and invest in supply chain operations for its underwear business.
The sale is expected to close in the second half of 2024.
