Authentic Brands Group to Buy Champion
According to WWD, the tentative $1 billion deal could close by the end of May.
As first reported by WWD and shared via Yahoo! News, Authentic Brands Group has agreed to purchase the Champion label from HanesBrands Inc. The deal is said be just over $1 billion.
Delta Galil, Sycamore Partners, G-III Apparel, and WHP Global were also involved in the bidding process sources told WWD.
Champion represents about $2 billion of HanesBrands’ $5.6 billion in fiscal 2023 sales, the Independent Tribune reported.
Sources warned that Authentic Brands’ purchase could result in employee layoffs because Authentic Brands could source manufacturing, design, logistics, and operation of the label’s components to other companies.
As stated by WWD, HanesBrands was reportedly trying to reset the course for Champion by shifting its mix and showing more discipline on product and channel segmentation. Just last December, the company hired Richard McCloud from Canada Goose to become the vice president, chief marketing officer of global Champion.
HanesBrands had a profitable deal with many universities across the country where it supplied campuses with Champion sweatshirts and other items with the school name on them. Sources said that model would probably continue.
HanesBrands announced in September that a strategic evaluation of the Champion line was underway.
