Authentic Brands Group (ABG) finalises its acquisition of Champion, marking its largest acquisition since Reebok.
- Champion boasts annual global retail sales nearing $3bn, highlighting its significant presence in the apparel industry.
- AMG Companies to oversee Champion’s core operations in North America, ensuring streamlined management.
- New partnerships forged for Champion in Latin America with leading firms like Falic Group and IB Group.
- Additional brand partnerships are anticipated in Europe, Asia, and Australia, aiming for global market expansion.
Authentic Brands Group (ABG) has successfully finalised the acquisition of the renowned brand Champion, in a significant move that marks its biggest acquisition since purchasing Reebok. The deal, initially announced in June, was completed with a valuation of $1.2 billion (£940 million), potentially increasing to $1.5 billion (£1.2 billion) based on performance metrics. This strategic acquisition underscores ABG’s commitment to expanding its portfolio of global brands.
Champion, a brand with a legacy of quality and innovation for over a century, generates nearly $3 billion (£2.25 billion) in worldwide retail sales each year. This positions it as a formidable player in the apparel industry and a valuable asset for ABG, marking its second-largest acquisition to date.
Going forward, AMG Companies will be responsible for managing Champion’s core business operations across the United States and Canada. These new affiliations aim to maintain the brand’s market leadership while expanding its influence. The United States collegiate apparel segment will continue under a novel license agreement with GearCo, managed by the investment firm Ames Watson. Moreover, BBC International and Gildan have been appointed as partners for footwear and printwear, respectively, within the North American territory.
In Central and South America, the brand has collaborated with the Falic Group to expand its clothing and accessories line, while the IB Group will take charge of the Mexican market. These partnerships are part of a strategic plan to bolster Champion’s presence across diverse geographic regions.
ABG founder, chairman, and CEO Jamie Salter expressed confidence in the new venture, emphasising that the involvement of partners like GearCo, BBC, and AMG Companies will play a pivotal role in driving Champion’s growth. He highlighted the brand’s commitment to leveraging its rich history while pursuing innovation and expanding its reach to new markets and consumer bases.
These strategic partnerships position Champion for expansive global growth and sustained market leadership.
