HanesBrands (PPAI 191138, Gold), PPAI 100’s No. 66 supplier – which operates in the promotional products industry through the Hanes, Champion, ComfortWash and Alternative Apparel brands – announced that it has completed the sale of its Champion brand to Authentic Brands Group. It was first reported in April that Authentic Brands had won a bid for the Champion.

  • According to HanesBrands, the deal involves a transaction value of $1.2 billion.
  • Ultimately, the deal has the potential to reach $1.5 billion contingent on meeting certain performance thresholds.
  • Authentic Brands Group is an intellectual property management company. Champion would be joining a host of other well-known brands under its umbrella, including Barney’s New York, Reebok, Brooks Brothers, Eddie Bauer and Nine West.


“Today marks a major milestone on our journey to strengthen and simplify our business and is the culmination of a significant team effort to position HanesBrands on the optimal path for the future,” says HanesBrands CEO Steve Bratspies. “With the successful completion of this transaction, combined with our internal cash generation, we expect to pay down approximately $1 billion of debt in the second half of 2024.

“Looking ahead, we believe we’re well-positioned to generate strong shareholder returns over the next several years through topline growth, margin expansion, double-digit earnings per share growth, and further deleveraging of our balance sheet.”

  • Champion’s global sales decreased 26% – down 35% in the United States and 17% internationally – in first quarter 2024, according to HanesBrands’ Q1 2024 earning report. Sales had fallen by 23% in the final quarter of 2023.
  • The apparel giant finished last year with a net debt of $3.1 billion, making the sale of Champion a much-needed financial boost.
  • Beginning in Q2 2024, global Champion and U.S. outlet store businesses have been reclassified to discontinued operations.


What’s Ahead For Champion

For Authentic, the acquisition is part of a strategy to expand its portfolio of sports, lifestyle, entertainment and media brands and will increase its system-wide annual retail sales to more than $32 billion worldwide.

“Our successful efforts igniting Reebok’s momentum in sports have created a playbook to achieve a similar feat with Champion,” said Nick Woodhouse, president and chief brand officer of Authentic. “With expansive reach, differentiated channel strategy and a balanced strength across its women’s and men’s businesses, Champion has profoundly influenced sports culture.

“This is the perfect time for the brand to make a significant impact as women’s sports continue to broaden their presence and fandom worldwide.”

Authentic has said that it plans to leverage its platform of consumer verticals to convert the Champion business into a licensed model. It is reportedly in discussions with several existing and potential operators in key regions to manage the manufacturing, physical retail, e-commerce and wholesale operations of the business and maintain the brand’s global footprint.