Authentic Brands Group is continuing to snap up brands and announced Wednesday that it has signed a deal to acquire the Champion athletic brand from HanesBrands.
HanesBrands, which is publicly traded, said the acquisition price is $1.2 billion, with the potential to grow to $1.5 billion based on contingent cash consideration.
Champion, with approximately $2 billion in annual revenue, generates more than 40% of its business outside of North America. In 2023, the brand’s revenue dropped 23%, according to HanesBrands. In the U.S., Champion’s sales dropped 30%.
On a trailing 12-month basis at the end of the first quarter of 2024, Champion generated $75 million of adjusted EBITDA, HanesBrands said.
Authentic plans to convert Champion’s operations into a licensing model as it does with all of its brands. The company said it is in discussions with several existing and potential licensing partners around the world.
“Our successful efforts igniting Reebok’s momentum in sports have created a playbook to achieve a similar feat with Champion,” Nick Woodhouse, president and chief brand officer of Authentic, said in a statement.
Hanes said it is selling Champion to focus on its underwear business and to pay down debt.
Authentic’s portfolio of brands continues to grow and includes David Beckham, Sports Illustrated, Reebok, Brooks Brothers, Barneys New York, Judith Leiber, Ted Baker, Hunter, Vince, Hervé Léger, Frye, Nautica, Juicy Couture, Vince Camuto, Lucky Brand, Aéropostale, Forever 21, Nine West, Sperry, Rockport, Eddie Bauer, Boardriders, Quiksilver, Billabong, Roxy, DC Shoes, RVCA, Spyder, Volcom, and more.
