HanesBrands Considers Sale Of Champion Brand
HanesBrands (PPAI 191138, S10) – which operates in the promotional products industry as suppliers Hanes, Champion, ComfortWash and Alternative Apparel – has announced that its evaluating strategic options for its Champion brand, including a potential sale.
“We’re executing a strategy that is based on leveraging our iconic brands and competitive advantages to drive accelerated growth and profitability, while simplifying and focusing all aspects of the business,” says HanesBrands CEO Steve Bratspies.
“With this as our foundation, we’re continuing to take the actions necessary to adapt and ensure all of our brands in both innerwear and activewear around the world are on the optimal path to achieve long-term success.”
Champion’s ‘Significant Structural Improvements’
In recent years, HanesBrands’ executive leadership team has implemented “significant structural improvements” within Champion, resulting in greater distinction between the company’s innerwear and activewear businesses, according to HanesBrands Chairman Ronald L. Nelson.
“Champion is a renowned global lifestyle brand with a storied heritage in sports as the pioneer of American athletic wear,” Nelson says. “We’re committed to working with our advisors to identify the right path forward that enables both Champion and HanesBrands to reach their fullest potential and maximizes value.”
The Winston-Salem, North Carolina-based company has tapped Goldman Sachs as an advisor for the assessment process, of which there’s “no assurance” will result in HanesBrands pursuing any particular transaction or other strategic outcome regarding Champion, the company says.
- HanesBrands hasn’t set a timetable for completion of this process and may suspend or terminate the review at any time.
- HanesBrands doesn’t intend to make any further announcements regarding the process unless and until it determines that further disclosure is appropriate or necessary.
HanesBrands’ announcement comes less than two weeks after striking a multi-year license agreement with G-III Apparel for the design, production and distribution of the Champion and C9 Champion brands in North America.
“We’re thrilled to work with G-III’s team of world-class experts in expanding and elevating iconic brands, making them a powerful partner as we grow Champion globally,” said Vanessa LeFebvre, president of global activewear at HanesBrands.
Champion’s global sales decreased by 16% – down 25% in the United States and 1% internationally – in the second quarter of 2023, according to HanesBrands’ most recent earnings report in August.