HanesBrands has completed the sale of the intellectual property and certain operating assets of the global Champion business to Authentic Brands Group. It is the second-largest brand acquisition in Authentic’s history.

“With the successful completion of this transaction, combined with our internal cash generation, we expect to pay down approximately one billion dollars of debt in the second half of 2024,” said Steve Bratspies, HanesBrands CEO.

The deal announced in June with a transaction value of 1.2 billion dollars, with the potential to reach up to 1.5 billion dollars through an additional contingent cash consideration of up to 300 million dollars based on achievement of performance thresholds was unanimously approved by the HanesBrands board of directors. Champion generates nearly 3 billion dollars in global retail sales annually.

Authentic said in a statement that Champion’s long-term US collegiate apparel business will now be carried forward under a new license granted to GearCo, which will be managed and operated by Ames Watson with Fanatics as an investor. AMG Companies will manage Champion’s core business in the US and Canada through itsaffiliates including High Life for activewear, Basic Resources for underwear and sleepwear, USA Legwear for legwear and Fit for Life for fitness accessories. Additional partners in these regions include BBC for footwear and Gildan for printwear.

The company added that in Central and South America, Falic Group will lead as Champion’s primary partner for apparel and accessories, while IB Group will continue its omnichannel strategy to strengthen the brand’s position in the Mexican market.

Commenting on the completion of the acquisition, Jamie Salter, founder, chairman and CEO of Authentic said: “This acquisition marks a significant milestone, not just for Champion, but for Authentic as well. With the strong backing of our partners at GearCo, BBC and AMG Companies, we’re in a prime position to accelerate Champion’s growth globally.”

On its part, HanesBrands will now focus on extending its leadership position in the innerwear category by increasing investment across its portfolio of brands, including Hanes, Bonds, Maidenform, and Bali.