Authentic Brands Group (ABG) has finalized its acquisition of Champion, enhancing its brand portfolio and signaling potential growth opportunities.
- The acquisition deal stands at $1.2 billion, with the potential to increase to $1.5 billion based on performance metrics.
- Champion, renowned for its high-quality and innovative products, is anticipated to boost Authentic’s market presence, being the second largest acquisition after Reebok.
- New operational partners for the brand in North and Latin America include AMG Companies, GearCo, BBC International, Gildan, and Falic Group.
- Authentic aims to expand Champion’s reach into new markets, with forthcoming partnerships slated for Europe, Asia, and Australia.
Authentic Brands Group (ABG) has completed its acquisition of Champion, marking its most significant business transaction since acquiring Reebok. The deal, initially announced in June, involves a purchase from HanesBrands valued at $1.2 billion, with the possibility of escalating to $1.5 billion should certain performance criteria be met.
Champion, which generates approximately $3 billion in global retail sales annually, stands as a strategic enhancement to ABG’s brand portfolio. As the second largest acquisition since Reebok, this move signals ABG’s commitment to bolstering its presence in the global apparel market.
The management of Champion’s operations in North America falls under the purview of AMG Companies. Additionally, the US collegiate apparel business will be managed by GearCo under a new licensing agreement. Other regional partners include BBC International for footwear and Gildan for printwear, with the Falic Group spearheading operations in Central and South American markets and IB Group in Mexico.
The strategic plan involves leveraging Champion’s historic reputation and quality to advance its market penetration. With the support of reliable partners such as GearCo and AMG Companies, ABG is poised to accelerate the brand’s growth trajectory.
CEO Jamie Salter expressed confidence in Champion’s potential: “Champion has set the standard for quality and innovation for over a century. With the strong backing of our partners at GearCo, BBC, and AMG Companies, we’re in a prime position to accelerate Champion’s growth globally.” The focus is on honoring Champion’s rich history while pursuing innovation and expanded market reach.
Looking ahead, Authentic Brands Group is preparing to announce further partnerships to extend Champion’s footprint into Europe, Asia, and Australia. This expansion underscores ABG’s strategic intent to maximize Champion’s potential across diverse markets.
Authentic Brands Group’s acquisition of Champion represents a strategic expansion of its portfolio, poised to enhance its market influence globally.
