Everyday apparel company HanesBrands has added another player to its team of labels.
“This acquisition, coupled with the recent purchase of the Champion business from our licensee in Japan, will unite the Champion brand globally and will give us a powerful platform for growth on every continent,” COO Gerald Evans Jr. said in a statement Thursday.
The deal is expected to close around June and the purchase price will be 10 times Champion Europe’s fiscal 2016 earnings, projected to be about $20 million.
Champion Europe designs, sources and sells Champion athletic apparel directly to consumers via 130 company-owned stores in Italy and Greece. It also has a robust wholesale business in those countries, as well as in Spain and Scandinavia.
According to a press release, Champion in Europe will be run as a division of the company’s global Champion organization. Sauro Mambrini, the brand’s chief executive officer and president, will remain with HanesBrands to oversee operations.
“Champion is a great brand that resonates with consumers worldwide,” Mambrini said. “In Europe, we have built a business that reflects the Champion heritage from the United States and then optimizes a natural affinity for Italian apparel design. Our team is eager to join the global Champion team, which will benefit the business in every market served and increase the potential for expansion into new markets.”
“This is a great time to do an acquisition,” Hanes Chairman and CEO Richard Noll said. “Our overall business is trending as expected; our recent acquisitions are performing well; we have a vision for Champion as a global brand; and we feel good about delivering double-digit earnings growth in 2016 and for many years to come.”
HanesBrands, based in Winston-Salem, North Carolina, markets basic innerwear and activewear apparel in the Americas, Europe and Asia under several labels, including Hanes, Playtex, Bali, Maidenform and Wonderbra.