Hanesbrands Inc. Acquires Alternative Apparel
HanesBrands Inc., Winston-Salem, N.C., today announced preliminary third-quarter 2017 net sales and earnings per share, and announced the acquisition of Alternative Apparel.
“We met our goal of returning to organic growth, and we continued to generate strong operating cash flow,” said Hanes CEO Gerald W. Evans Jr. “Our sales and EPS results, driven by stronger-than-expected international growth, are expected to be consistent with our guidance.”
Hanes has purchased privately held Alternative Apparel in an all-cash transaction valued at approximately $60 million on an enterprise basis. Alternative Apparel, based in Norcross, Ga., is expected to have full-year 2017 net sales of approximately $70 million.
"We are excited to expand our brand portfolio in the embellishment market," said Rachel Newman, director of sales and marketing for Hanes Activewear. "Alternative Apparel created a new high-end threshold in this channel. Along with Hanes and Champion, Alternative gives us an incredible range of apparel that meets the needs of customers at every level across the industry. Importantly, Alternative’s commitment to social responsibility fits firmly within the Hanes ethos. This is a great opportunity to expand our commitment and footprint in the branded printwear industry. We look forward to sharing more information in the weeks to come. Our plans are to grow and expand all of our brands."
Alternative Apparel, founded in 1995, sells Alternative brand basic T-shirts, fleece, and other tops and bottoms. The company’s sales and growth are split between the embellishment channel and the retail, online and direct-to-consumer channels. The company operates three Alternative stores in Venice, Calif.; New York City; and San Francisco.
“This is an exciting acquisition that supports our activewear growth strategy,” Evans added. “We will be able to leverage our global low-cost supply chain, which is a recognized social, environmental and ethical leader, with another strong brand to expand our market and channel penetration, including online. Combining these two companies is a great way to create value and generate growth opportunities.”
Alternative Apparel outsources production of all of its products, while Hanes self-manufactures the majority of its activewear basics.
“Alternative Apparel has an attractive business model, a very strong and differentiated brand, and a highly talented team of employees,” Evans said. “Adding the Alternative brand and product lineup further diversifies our sales mix as we emphasize growth across all channels, including online.”
Alternative Apparel CEO Evan Toporek will remain with Hanes to continue leading the business out of Norcross.
“We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform,” Toporek said. “Partnering with a like-minded company that is a longtime industry innovator and leader will benefit our employees, our customers, and our brand as a whole.”
In the past six years, Hanes has expanded its Champion and Hanes activewear graphic and sports apparel business through the acquisitions of Gear for Sports, Knights Apparel and GTM Sportswear. The company has also launched Hanes Ink custom Champion and Hanes college and high school logo apparel available online.
For more information on Hanesbrands Inc., visit www.haneslocator.com.