HanesBrands To Sell Its Champion Business For $1.2 Bln To Authentic; Stock Up Pre-market

(RTTNews) - Hanesbrands Inc. (HBI) announced on Wednesday that it has agreed to sell the intellectual property and certain operating assets of the global Champion business to Authentic Brands Group for $1.2 billion, with the potential to increase to $1.5 billion through an additional payment of up to $300 million based on performance. Following this news, the stock is up 16% in pre-market trading.

The deal is subject to customary closing conditions and is set to be finalized in the second half of 2024.

Hanesbrands anticipates receiving $900 million in net proceeds from the transaction, which will be used to reduce debt.

Post-closing, HanesBrands will provide transition services for Champion, including managing the business in specific regions during a transitional period.

Following the completion of the sale, the company plans to focus on strengthening its position in the innerwear market by investing in consumer-focused brands, including Hanes, Bonds, Maidenform, and Bali.

In pre-market activity on the NYSE, the shares are trading at $5.87, up 16.14%.