Authentic Brands Group to acquire Champion from Hanesbrands for over $1 billion

According to international press reports, Authentic Brands Group (ABG) has agreed to buy the sportswear brand Champion from Hanesbrands Inc. for just over $1 billion. The deal was reportedly reached between March 30 and April 1, following a weeks-long bidding process.

Transaction Snapshot

  • Deal value: Just over $1 billion (initially sought at least $1.4 billion)
  • Deal type: Acquisition
  • Deal multiple: N/A
  • Buyer: Authentic Brands Group (ABG)

While no formal agreement has been signed yet, rumors suggest that a written deal could be finalised next week. The sale is expected to provide a much-needed financial boost for Hanesbrands, which ended 2023 with net debt of $3.1 billion and saw a 12% decline in Q4 sales to $1.3 billion.

However, sources warn that the acquisition could result in thousands of job losses worldwide, as ABG is likely to outsource much of Champion's manufacturing, design, logistics, and operations to other companies.

Champion, founded in 1919, has seen its global sales decline by 23% in Q4 2023 due to a challenging sportswear market and strategic actions aimed at long-term profitable growth. Hanesbrands confirmed plans to sell the brand last September.

ABG, one of the world's largest sports and entertainment licensing companies, boasts a portfolio of brands that generate over $29 billion in annual retail sales across 150 countries. Its portfolio includes Reebok, Brooks Brothers, Forever 21, Nautica, and recently acquired Sperry and Hunter, among others.

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