Sold to Authentic Brands Group (Il Sole 24 Ore Radiocor) - New York, 05 Jun - HanesBrands said that it has entered into a definitive agreement to sell the intellectual property and certain operating assets of the Champion business to Authentic Brands Group for 1.2 billion dollars, with the potential to reach up to 1.5 billion through an additional contingent cash consideration of up to 300 million based on achievement of performance thresholds.

Upon completion of the transaction, HanesBrands intends to focus on extending its position in the innerwear category and "generating above-market growth through continued consumer-centric product innovation and increased investment across its portfolio of leading brands, including Hanes, Bonds, Maidenform, and Bali." HanesBrands is expected to be completed in the second half of 2024.

The group expects of net proceeds of approximately 900 million dollars, including working capital adjustments and other customary transaction costs and excluding the contingent cash consideration. It will utilize all net proceeds from the transaction to accelerate its reduction of debt and expects "meaningful deleveraging on a net debt-to-adjusted EBITDA basis." On a trailing 12-month basis as of the end of the first quarter 2024, the global Champion business generated approximately 75 million dollars of adjusted EBITDA, which is net of approximately 60 million of stranded costs.

AAA-Web

(RADIOCOR) 05-06-24 15:23:45 (0470) 5 NNNN