HanesBrands Agrees to Sell Champion to Authentic Brands Group

Authentic is expected to purchase Champion for $1.2 to $1.5 billion by the end of 2024.

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HanesBrands, a manufacturer of apparel brands, announced that it has entered into a definitive agreement to sell the intellectual property and certain operating assets of the company’s global Champion business to Authentic Brands Group for a transaction value of $1.2 billion, with the potential to reach up to $1.5 billion through an additional contingent cash consideration of up to $300 million based on achievement of performance thresholds.

This agreement, which has been unanimously approved by the HanesBrands board of directors, is the successful conclusion of the company’s previously announced evaluation of a range of strategic options for the global Champion business.

According to Hanesbrands, upon completion of the transaction, it intends to focus on extending its leadership position in the innerwear category and generating above-market growth through continued consumer-centric product innovation and increased investment across its portfolio of leading brands, including Hanes, Bonds, Maidenform, and Bali.

“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,” stated Bill Simon, chairman of the board for Hanesbrands. “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.”

Steve Bratspies, Hanesbrands CEO, commented, “Today’s announcement is the culmination of significant effort by our teams to position all of our brands on the optimal path for the future. Over the past three years, we have taken necessary actions to enhance the company’s operations and financial performance – returning to historical gross margins, reducing our cost structure, lowering our debt levels, and generating consistent cash flow.”

Bratspies continued, “The successful completion of this transaction further simplifies our business, deleverages our balance sheet, and enhances the company’s operations and financial performance. As we begin the next chapter for HanesBrands, we believe we’re in an even stronger position to further extend our leadership in innerwear, pursue new cost reduction opportunities as we ensure we have the right operating structure in place, and advance our multi-year flywheel to drive strong shareholder returns.”

Champion transaction details and use of proceeds

The transaction remains subject to customary closing conditions and is expected to be completed in the second half of 2024. Subsequent to the closing, HanesBrands will provide certain transition services for Champion, including operating the business in select regions through a transition period.

HanesBrands expects net proceeds from the transaction of approximately $900 million, including working capital adjustments and other customary transaction costs and excluding the contingent cash consideration. According to Hanesbrnads, in line with its commitment to debt reduction, the company will utilize all net proceeds from the transaction to accelerate its reduction of debt and expects meaningful deleveraging on a net debt-to-adjusted EBITDA basis.

On a trailing 12-month basis as of the end of the first quarter 2024, the global Champion business generated approximately $75 million of adjusted EBITDA, which is net of approximately $60 million of stranded costs. Hanesbrands stated it has specific plans to remove all stranded costs within a year of the transaction closing as it completes the transition of the business.

Hanesbrands intends to classify Champion as discontinued operations in the second quarter of 2024 and as a result, expects to update its full-year 2024 guidance in conjunction with the release of its second-quarter earnings results.


Goldman Sachs & Co. LLC and Evercore are serving as financial advisors to HanesBrands, and Kirkland & Ellis LLP and Jones Day are serving as its legal advisors.

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Marie Fennema

Marie Fennema is the managing editor of GRAPHICS PRO, including GRAPHICS PRO Today, covering news and guidance in apparel decoration, awards and engraving, and sign and digital printing.

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