Authentic Brands Group (ABG) has announced an agreement to acquire Champion’s intellectual property for $1.2bn (£940m).
- This deal, involving ABG and HanesBrands, may rise to $1.5bn (£1.2bn) with contingent conditions.
- Jamie Salter of ABG plans to transform Champion into a licensed model through collaborative operations.
- The acquisition aligns with ABG’s strategy to enhance its sports and entertainment licensing portfolio.
- Completion of this acquisition is anticipated by late 2024, pending regulatory clearance.
Authentic Brands Group (ABG) has reached a significant milestone by securing an agreement to purchase the intellectual property and specific operational assets of the renowned sportswear brand Champion for a substantial $1.2 billion (£940 million). This acquisition may potentially escalate to $1.5 billion (£1.2 billion) subject to a $300 million (£235 million) contingent cash consideration if certain performance benchmarks are achieved.
ABG, under the leadership of Chairman and CEO Jamie Salter, has expressed its intent to transform Champion into a licensed model. The company is actively engaging with prospective operators to handle facets such as manufacturing, physical retail, e-commerce, and wholesale operations. This move is part of ABG’s broader strategy to consolidate its position as a leading entity in the sports and entertainment licensing industry.
Jamie 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.” His statement highlights the strategic importance of this acquisition to ABG’s growth and market positioning.
From HanesBrands’ perspective, as articulated by their Chairman Bill Simon, the decision to proceed with this agreement follows a comprehensive review process of the global Champion business. The agreement with ABG is seen as a means to maximise value for Champion while positioning HanesBrands for long-term success.
The transaction is slated for completion in the latter half of 2024, contingent upon securing the necessary regulatory approvals.
The acquisition of Champion by Authentic Brands Group signifies a strategic expansion in its sportswear portfolio, pending regulatory approval.
