Hanesbrands Agrees to Sell Champion Brand for Up to $1.5 Billion
To increase investments across its portfolio of brands, including Hanes, Bonds, Maidenform, and Bali
Hanesbrands HBI -2.13%decrease; red down pointing triangle has agreed to sell its Champion business to Authentic Brands Group in a deal valued at up to $1.5 billion.
The apparel brands company said Wednesday it has signed a definitive agreement to sell the intellectual property and certain operating assets of its Champion business for a transaction value of $1.2 billion, which could rise up to $1.5 billion based on reaching certain performance thresholds.
The decision to sell the segment follows an evaluation of a range of strategic options for the global Champion brand.
Once the transaction is completed, Hanesbrands said it plans to turn its attention to the innerwear category and generating higher growth through improving products and increasing investments across its portfolio of brands, including Hanes, Bonds, Maidenform, and Bali.