HanesBrand to acquire Champion Europe
HanesBrands announced Thursday that it has entered into a purchase agreement to acquire Champion Europe, which owns the trademark for the Champion brand in Europe, the Middle East and Africa. The acquisition will unite the Champion brand globally.
Hanes has agreed to acquire the privately held, Italy-based company 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. Champion Europe expects 2016 net sales of more than €190 million.
Champion Europe is a designer, marketer and distributor of athletic apparel and accessories across Europe, Africa and the Middle East. The company’s largest wholesale markets are Italy, Greece, Spain and Scandinavia, and it operates approximately 130 stores in Italy and Greece.
The acquisition, which is subject to certain closing conditions, is expected to close mid-year 2016. After the acquisition closes, Hanes will update its 2016 financial guidance to reflect the closing timing and outlook for Champion Europe.
Champion in Europe will operate as a division of the company’s global Champion organization. Champion Europe CEO and President Sauro Mambrini will remain with HanesBrand to oversee the company’s operations.
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