Authentic Brands Group initially agrees to acquire Champion from Hanesbrands Inc.

After a bidding process that lasted weeks, Authentic Brands Group emerged victorious after agreeing to acquire Hanesbrands Inc.’s athletic apparel label Champion. to buy for just over $1 billion.

“Champion agreed to be acquired by ABG last Friday or Monday,” said a source familiar with the negotiations. “They should close at the end of May or beginning of June.”

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No formal agreement has been signed yet, but there are rumors that something could be put in writing next week. Also interested in the label were Delta Galil, Sycamore Partners, G-III Apparel and WHP Global, sources said.

Sources warned that the purchase of Authentic Brands could result in thousands of employees around the world losing their jobs, as the intellectual property management company controls much of the production, design, logistics and operation of its various components of the label to other companies.

Hanesbrands set up his second largest label For sale Last year, the company initially sought at least $1.4 billion after Champion’s sales plummeted in recent years. It hired Goldman Sachs & Co. and Evercore to conduct strategic research options for the more than 100-year-old label that once supplied all the uniforms for the National Basketball Association teams in the 1990s.

Champion’s sales have plummeted over the past two years, partly due to fewer collaborations with names like Supreme and Rick Owens. Are worldwide sales fell 23 percent in the fourth quarter of 2023, with the weakness attributed to both strategic changes and the challenging sportswear market.

A sale of Champion will give Hanesbrands’ finances a much-needed boost. The company ended last year with net debt…

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