HANES TO MAKE ALL-CASH OFFER ON CHAMPION EUROPE
HanesBrands has entered into a definitive purchase agreement to acquire the privately-held Champion Europe, which owns the trademark for the Champion brand in Europe, the Middle East and Africa in an all-cash transaction.
The purchase price will be 10 times actual calendar 2016 earnings before interest, taxes, depreciation and amortization, subject to adjustment for cash, debt and working capital. The acquisition, which is subject to certain closing conditions, is expected to close mid-year 2016.
Champion Europe designs, sources and sells Champion athletic apparel wholesale to retailers and directly to consumers via company-owned retail stores. The company’s largest wholesale markets are Italy, Greece, Spain and Scandinavia, while the company operates approximately 130 retail stores in Italy and Greece.
Champion in Europe will be run as a division of the company’s global Champion organization. Sauro Mambrini, chief executive officer and president of Champion Europe, will remain with HanesBrands to oversee Champion Europe operations.
“In Europe, we have built a business that reflects the Champion heritage from the United States and then optimizes a natural affinity for Italian apparel design,” said Mamrbini. “Our team is eager to join the global Champion team, which will benefit the business in every market served and increase the potential for expansion into new markets.”
“This is a great time to do an acquisition,” said Hanes CEO Richard A. Noll, “Our overall business is trending as expected; our recent acquisitions are performing well; we have a vision for Champion as a global brand; and we feel good about delivering double-digit earnings growth in 2016 and for many years to come.”
