Hanesbrands Inc. to Acquire Champion Europe
Hanesbrands Inc., Winston-Salem, N.C., announced that it has entered into a definitive purchase agreement to acquire Champion Europe, which holds the trademark for the Champion brand across Europe, the Middle East and Africa.
Hanesbrands Inc. agreed to acquire the Italy-based, privately held Champion Europe in an all-cash transaction. According to the press release, the purchase price will be 10 times calendar 2016 earnings before interest, taxes, depreciation and amortization.
The acquisition is subject to closing conditions, but both parties expect it to close mid-2016. Hanesbrands Inc. will run Champion in Europe as a division of its global Champion organization. Sauro Mambrini, CEO and president of Champion Europe, will join Hanesbrands Inc. to oversee Champion Europe's operations.
"This acquisition, coupled with the recent purchase of the Champion business from our licensee in Japan, will unite the Champion brand globally and will give us a powerful platform for growth on every continent," said Gerald W. Evans Jr., Hanesbrands Inc.'s chief operating officer, in a press release. "Sauro Mambrini and the highly capable management team of Champion Europe will be a great addition to our organization."
"Champion is a great brand that resonates with consumers worldwide," Mambrini said in the press release. "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 designs. 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."
Following the acquisition's closing, Hanesbrands Inc. plans to update its financial guidance to reflect the outlook for Champion Europe and any currency considerations.
"This is a great time to do an acquisition," Richard A. Noll, chairman and CEO of Hanesbrands Inc., said in the press release. "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."
For more information on Hanesbrands Inc., visit www.haneslocator.com.