Fashnopsis:
- Authentic Brands Group acquires Champion Athleticwear for $1.2 billion, boosting its sports & entertainment portfolio.
- Champion, known for its heritage designs and innovative materials, will become a licensed brand under Authentic.
- Authentic plans to leverage its expertise to revitalize Champion, similar to its strategy with Reebok.
- HanesBrands divests Champion to focus on its core innerwear business, capitalizing on recent market share growth.
- The acquisition strengthens Authentic’s position in sports and expands Champion’s global reach.
In a move to solidify its position in the sports and entertainment licensing space, Authentic Brands Group (Authentic) has acquired Champion Athleticwear from HanesBrands for $1.2 billion. This strategic acquisition adds Champion, a renowned sportswear brand known for its innovative athletic apparel, to Authentic’s already impressive portfolio that includes Reebok, Ted Baker, and Quiksilver.
Champion: A Legacy Brand Joins the Authentic Family
Champion, a pioneer in athletic wear, has been a key player in shaping the industry. Notably, they introduced the first hooded sweatshirt and continue to offer a comprehensive line of performance apparel for men and women. Their product range includes activewear, casual wear, footwear, and accessories, catering to a global audience across over 90 countries. Interestingly, more than 40% of Champion’s business comes from outside North America, highlighting their international reach.
Leveraging Expertise to Fuel Champion’s Growth
Authentic plans to utilize the same successful strategy they employed with Reebok to revitalize Champion. This strategy involves leveraging Authentic’s diverse consumer base and brand-building expertise to transition Champion into a licensed model. Discussions are already underway with potential operators in key regions to manage various aspects of Champion’s business, including manufacturing, retail operations (physical and online), and wholesale channels. This ensures the brand maintains its global footprint while benefiting from Authentic’s experience.
Aligning Strategies: Champion and Women’s Sports Growth
“Our successful efforts igniting Reebok’s momentum in sports have created a playbook to achieve a similar feat with Champion,” said Nick Woodhouse, President and Chief Brand Officer of Authentic. He further emphasizes the strategic timing of the acquisition, highlighting the expanding presence and global fan base of women’s sports, which perfectly aligns with Champion’s balanced strength in both men’s and women’s apparel.
Finalization and Future Focus
The acquisition is subject to standard closing procedures, including regulatory approval, and is expected to be finalized in the latter half of 2024.
HanesBrands Sharpens Focus on Core Business
For HanesBrands, the divestiture of Champion allows them to sharpen their focus on their core innerwear business. This segment, which includes established brands like Hanes, Bonds, Maidenform, and Bali, has experienced positive market share growth. Following the completion of the sale, HanesBrands intends to solidify their leadership position in the innerwear category by driving consumer-centric product innovation and increasing investments across their portfolio.
Statements from Key Executives
“Today’s announcement is the culmination of significant effort by our teams to position all of our brands on the optimal path for the future,” said Steve Bratspies, Chief Executive Officer at HanesBrands. He elaborated on the company’s recent efforts to optimize operations and financial performance, including improved margins, cost reduction, debt reduction, and consistent cash flow generation.
“The successful completion of this transaction further simplifies our business, deleverages our balance sheet and enhances the company’s operations and financial performance. As we begin the next chapter for HanesBrands, we believe we’re in an even stronger position to further extend our leadership in innerwear, pursue new cost reduction opportunities as we ensure we have the right operating structure in place, and advance our multi-year flywheel to drive strong shareholder returns,” Bratspies concluded.
Image Source: ABG Group/ Champion
