HanesBrands will sell the IP and certain operating assets of its global Champion business to Authentic Brands Group for $1.2 billion, a figure that could increase to $1.5 billion via an additional contingent cash consideration if certain performance thresholds are met. The acquisition, which has been unanimously approved by the HanesBrands board of directors, is slated to be completed in the second half of 2024.
“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 that we believe maximizes value for Champion and best positions HanesBrands for long-term success,” said Bill Simon, Chairman of the Board of HanesBrands in a statement. “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.”
Following the closing, which remains subject to customary conditions, 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 sale of approximately $900 million, which the company plans to use to accelerate debt reduction.
Authentic, which manages a wide range of brands including Juicy Couture, Reebok and Frederick’s of Hollywood, adopted an AI-powered solution designed to enhance merchandising, personalization and search capabilities in February 2024.
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