Authentic Brands Group (ABG) plans to acquire the renowned sportswear brand, Champion.
- The acquisition involves a binding agreement valued at $1.2bn (£940m), with a potential to increase to $1.5bn (£1.2bn).
- ABG intends to transition Champion into a licensed business model.
- HanesBrands anticipates the deal to maximise Champion’s value and ensure long-term success.
- Completion of the acquisition is expected in the latter half of 2024, pending regulatory approval.
Authentic Brands Group (ABG) has entered into a binding agreement to acquire Champion, a well-recognised sportswear brand, from its current owner, HanesBrands. The deal, valued at $1.2 billion (£940 million), includes the acquisition of Champion’s intellectual property and certain operational assets. This agreement further allows for an additional contingent cash consideration of $300 million (£235 million), dependent on performance benchmarks, potentially increasing the total value to $1.5 billion (£1.2 billion).
ABG aims to convert Champion into a licensed model, which involves negotiating with prospective operators who would oversee the manufacturing, physical retail, ecommerce, and wholesale divisions. This strategic shift aligns with ABG’s broader goal of expanding its portfolio in the sports and entertainment licensing sector. ABG’s Chairman and CEO, Jamie Salter, 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.”
From the perspective of HanesBrands, the transaction is viewed as a strategic move to optimise Champion’s market value while positioning the parent company for sustained success. Bill Simon, Chairman of HanesBrands, remarked, “Following a thorough review of options for the global Champion business, we are pleased to have reached this agreement with Authentic Brands Group that we believe maximises value for Champion and best positions HanesBrands for long-term success.”
The acquisition process is anticipated to be finalised in the second half of 2024, subject to the necessary regulatory approvals. This development marks a significant step for both Authentic Brands Group and HanesBrands, indicating a transformative period for Champion as it transitions under new ownership.
The acquisition of Champion by Authentic Brands Group signifies a strategic expansion within the global sportswear market, pending final regulatory approvals.
