Authentic Brands Group has announced the acquisition of Champion, valuing the deal at $1.2bn.
- Including contingent considerations, the deal could rise to $1.5bn.
- Authentic Brands plans to transform Champion into a licensed model.
- They are in talks to manage manufacturing, retail, and wholesale operations.
- The acquisition is set to complete in the second half of 2024, pending approval.
Authentic Brands Group, a prominent company with an extensive portfolio of over 50 global brands, has agreed to acquire the intellectual property and operating assets of the iconic sportswear brand Champion. This acquisition from HanesBrands is valued at $1.2bn (£940m), and contingent cash considerations could potentially increase the value to $1.5bn (£1.2bn) based on future performance thresholds.
In a strategic move, Authentic Brands intends to convert Champion into a licensed model. This approach involves rigorous discussions with potential partners to efficiently manage Champion’s manufacturing, physical retail, ecommerce, and wholesale operations. Jamie Salter, the chairman and CEO of Authentic, stated, “Over the last few years, the addition of new brands together with the expansion of live events has grown Authentic into a world leading sports and entertainment licensing company. Bringing Champion into the fold further expands our position in this space.”
For HanesBrands, the sale of Champion represents a culmination of a thorough review process aimed at maximising value and setting the company on a path for sustained success. Bill Simon, chairman of HanesBrands, expressed satisfaction with the agreement reached with Authentic Brands Group, highlighting the strategic importance of this deal for Champion’s future.
The acquisition is progressing towards completion in the second half of 2024, subject to regulatory approvals. This move signifies a significant shift in the sportswear market landscape, further solidifying Authentic Brands Group’s stronghold in the sector.
The acquisition of Champion by Authentic Brands Group marks a pivotal expansion in the sportswear market, subject to regulatory approval.
