Companies

ABG confirms the acquisition of Champion

Jun 6, 2024 United States

Authentic Brands Group has further expanded its portfolio by signing a definitive agreement to acquire the Champion Athleticwear brand and business from HanesBrands

“We are excited to acquire Champion, a brand that shares our pioneering spirit. 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”, commented Jamie Salter, Chairman and Chief Executive Officer of Authentic.

The management brand company said it plans to leverage its diverse and multi-faceted consumer platform and brand-building expertise to transition the Champion business to a licensing model. Therefore, it is already in discussions with several existing and potential operators in key geographies to manage the manufacturing, physical retail, e-commerce and wholesale operations of the business and maintain the brand’s global footprint.

Founded in 1919, Champion operates in more than 90 countries, with more than 40% of its business hailing from outside North America. According to ABG, the brand “continues to be a premier destination for athletic and casual offerings and has a robust collegiate program that serves as a vital touchpoint for younger generations”.

The transaction was agreed for 1.2 billion US dollars, with the potential to reach up to 1.5 billion US dollars through additional contingent cash consideration of up to 300 million US dollars based on the achievement of performance thresholds. However, the acquisition is subject to certain standard closing conditions, including regulatory approval, so is only expected to be finalised in the second half of 2024.

Image Credits: authenticnewsroom.com

United States ABG Acquisitions Authentic Brands Group Brands Sportswear