In a strategic move, Authentic Brands Group (ABG) has set its sights on acquiring Champion, a renowned sportswear brand.
- The acquisition agreement between ABG and HanesBrands is valued at $1.2 billion and has the potential to reach $1.5 billion based on performance thresholds.
- ABG aims to transition Champion into a licensed business model, engaging with potential operators for its manufacturing and retail functions.
- Jamie Salter, CEO of ABG, emphasized the expansion of ABG’s licensing capabilities with the inclusion of Champion.
- The completion of this acquisition is projected for the latter half of 2024, pending regulatory approvals.
In a noteworthy development within the sportswear industry, Authentic Brands Group (ABG) has announced its intention to acquire the intellectual property and certain operating assets of the esteemed sportswear brand Champion. This move is strategically aligned with ABG’s ongoing expansion and diversification efforts in the sports and entertainment licensing sector.
The acquisition deal, which was disclosed on June 5, 2024, involves a significant financial investment valued at approximately $1.2 billion. The final transaction value could extend to $1.5 billion, contingent upon Champion meeting specific performance criteria set forth in the agreement. This positions the deal as a dynamic and potentially lucrative investment for ABG.
ABG plans to transform Champion into a licensed model, a strategic shift that will involve collaboration with prospective operators tasked with managing the brand’s manufacturing, physical retail, ecommerce, and wholesale operations. This planned transformation underscores ABG’s commitment to optimizing brand management and operational efficiencies across its expansive portfolio of over 50 global brands.
Jamie Salter, Chairman and CEO of ABG, articulated the strategic rationale behind the acquisition, noting the alignment with ABG’s growth trajectory in the sports and entertainment licensing domain. Salter stated, “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.”
Similarly, Bill Simon, Chairman of HanesBrands, expressed confidence in the agreement, highlighting it as a value-maximizing opportunity for Champion while strategically positioning HanesBrands for sustained success. Simon remarked on the thorough review leading to this decision and the favorable outcome expected for all stakeholders involved.
The conclusion of this acquisition hinges on securing the necessary regulatory approvals, with the finalization anticipated in the second half of 2024. This timeline aligns with ABG’s strategic planning and provides a clear path forward for both ABG and HanesBrands.
The acquisition signifies a significant expansion of ABG’s portfolio, strengthening its position in the sports and entertainment licensing market.
