HanesBrands has agreed to sell its struggling Champion sportswear business to Authentic Brands Group for up to $1.5 billion.
For a possible $1.5 billion Hanesbrands has agreed to sell Authentic Brands Group its faltering Champion sportswear division.
According to Hanesbrands selling up its second-biggest brand will enable it to improve its supply chain, lower debt, and increase investment in its other brands which include Bonds, Bali Maidenform, and Hanes. Following the decline of the previous year merger and acquisition activity has increased, coinciding with the arrangement.
After several quarters of declining sales at Champion—the sportswear brand’s demand is waning, especially in the US where sales fell 35% in the first quarter of the year Hanesbrands consented to the acquisition.
In September, the business began investigating strategic alternatives for the brand and stated that the transaction had a base value of $1.2 billion, with the potential to increase to $1.5 billion through a $300 million cash consideration based on performance.
Authentic Brands Group owns dozens of brands, including Reebok, Ted Baker, and Quicksilver. The firms expect the transaction to be finalized in the second half of 2024.
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Source
WSJ.COM
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