The recent acquisition of Champion by Authentic Brands Group (ABG) marks one of its largest deals, following the acquisition of Reebok.
- With an acquisition value potentially reaching $1.5 billion, the purchase was first announced in June and has now been finalised.
- The acquisition underscores ABG’s strategic expansion plans, particularly in North and Latin America with the appointment of new operating partners.
- Champion’s robust global retail presence, amounting to nearly $3 billion annually, makes it an attractive addition to ABG’s portfolio.
- Jamie Salter, CEO of ABG, emphasises the brand’s innovative legacy and the future potential for growth with new partnerships.
The strategic acquisition of Champion by Authentic Brands Group (ABG) is a significant event in the retail industry, representing ABG’s largest purchase after acquiring Reebok last year for €2.1 billion (£1.8 billion). ABG, which manages over 50 world-renowned brands such as Ted Baker and Forever 21, cemented this deal at a potential valuation stretching up to $1.5 billion (£1.2 billion), contingent on performance metrics.
This acquisition, originally announced in June, highlights ABG’s tactical move to bolster its market footprint across North and Latin America. Champion’s impressive global retail sales, approximately $3 billion (£2.25 billion) annually, bolster ABG’s already expansive portfolio, providing a substantial growth platform in the apparel sector.
ABG has strategically aligned with various partners to enhance Champion’s market penetration. In the United States and Canada, AMG Companies will oversee Champion’s core operations, while the long-standing collegiate apparel business transitions to GearCo under a fresh licence. Additional key partnerships include BBC International for footwear and Gildan for printwear, further diversifying Champion’s product offerings and market reach.
In Central and South America, ABG has appointed Falic Group as the main operator for clothing and accessories, with IB Group leading the market initiatives in Mexico. Furthermore, ABG aims to expand Champion’s presence globally, with Europe, Asia, and Australia identified as potential growth territories in the forthcoming months.
Jamie Salter, founder, chairman, and CEO of ABG, articulates a shared vision for Champion, noting, “Champion has set the standard for quality and innovation for over a century. With the strong backing of our partners at GearCo, BBC, and AMG Companies, we’re in a prime position to accelerate Champion’s growth globally.” Salter’s comments reflect a commitment to honouring Champion’s heritage while embracing new market opportunities.
The acquisition of Champion by ABG exemplifies a strategic move to expand its apparel dominance globally, leveraging strategic partnerships and innovative growth plans.
