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Authentic Brands Group has a new addition to celebrate as it adds athleticwear brand Champion to its portfolio.
Authentic said on Monday that it completed its $1.2 billion acquisition of the sportswear and casual wear brand from Hanesbrands Inc. Champion is now the second-largest brand acquisition in Authentic’s history, generating nearly $3 billion in global retail sales annually.
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“This acquisition enhances Authentic’s position as the largest sports and entertainment licensing company worldwide,” the brand management firm said.
Champion’s roots are in gym apparel, but it began facing competition from newer players entering the athleisure market. Authentic was one of the companies mentioned early in the sale process as as possible buyer, since it was known that the brand management firm was casting its eyes on the athletic sector.
Hanesbrands began exploring options for Champion a year ago after activist investor Barington Capital urged the North Carolina apparel company to shave down its $3.6 billion debt bill last month. Champion sales had fallen short of expectations, and the highly leveraged Hanesbrands began feeling financial pressure.
“Champion has set the standard for quality and innovation for over a century,” Authentic founder, chairman and CEO Jamie Salter said. “This acquisition marks a significant milestone, not just for Champion, but for Authentic as well. 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.”
Salter said the plan is to honor Champion’s rich heritage while driving innovation and expanding its reach to new markets and consumers.
“As the originator of the sweatshirt and a pioneer in activewear, Champion holds a legendary place in history. With a bold plan for the future, we’re ready to build on that legacy alongside our incredible partners, driving the brand forward and continuing to inspire athletes and active lifestyles for years to come,” said Authentic’s president and chief brand officer Nick Woodhouse.
The Champion brand is sold in more than 90 countries, and nearly half of its business originates from international consumers. Authentic will grow the international business through brand partnerships across new categories and territories throughout Europe, Asia, and Australia in the coming months, the company said.