HanesBrands, Winston-Salem, N.C., has entered into a definitive agreement to sell the intellectual property (IP) and certain operating assets of its Champion business to New York City-based Authentic Brands Group. The transaction is valued at $1.2 billion, but could reach as high as $1.5 billion with an additional contingent cash consideration of up to $300 million. The contingency is based on reaching performance thresholds. The sale, expected to be completed in the second half of 2024, remains subject to customary closing conditions. There also will be a transition period during which HanesBrands will provide certain transition services for Champion including operating the business in select regions.
After the sale closes, HanesBrands intends to focus on the innerwear category and its brands including Hanes, Bonds, Maidenform and Bali.
Bill Simon, chairman of the board, said: “Following a thorough review of options for the global Champion business with the support of our financial and legal advisors, we are pleased to have reached this agreement with Authentic Brands Group that we believe maximizes value for Champion and best positions HanesBrands for long-term success. Importantly, we believe this transaction will enable the company to accelerate its debt reduction while positioning HanesBrands to deliver consistent growth and cash flow generation through a focused strategy on advancing its leading innerwear brands and optimizing its world-class supply chain.”
2024 Quarterly Volume III
