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HanesBrands' Champion Europe acquisition in final stages

By Prachi Singh

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Business

HanesBrands has entered into a definitive purchase agreement to acquire Champion Europe, which owns the trademark for the Champion brand in Europe, the Middle East and Africa.

“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 Hanes COO Gerald W. Evans Jr, adding, “Sauro Mambrini and the highly capable management team of Champion Europe will be a great addition to our organization.”

Hanes has agreed to acquire the privately held Champion Europe, based in Italy, in an all-cash transaction. The purchase price will be 10 times actual calendar 2016 EBITDA, subject to adjustment for cash, debt and working capital. Champion Europe expects 2016 net sales of more than 190 million euros (216.4 million dollars), operating profit of approximately 15 million euros (17 million dollars), and EBITDA of approximately 20 million euros (22.7 million dollars).

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 organisation. Sauro Mambrini, CEO and President of Champion Europe, will remain with HanesBrands to oversee Champion Europe operations.

“This is a great time to do an acquisition. 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,” added Hanes Chairman and CEO Richard A. Noll.

Champion
HanesBrands