HanesBrands completed the acquisition of Champion Europe, which owned the trademark for the Champion brand in Europe, the Middle East and Africa.
“We now have a powerful global platform to drive Champion brand growth on every continent using our Innovate-to-Elevate strategy and low-cost, large-scale supply chain,” said Hanes Chief Operating Officer and CEO-Elect Gerald W. Evans Jr. “Sauro Mambrini, the chief executive officer of Champion Europe, and the accomplished European management team will remain with HanesBrands to run the business, which will complement our worldwide Champion commercial operations in the United States/the Americas, Japan/Asia, and Australia.”
Hanes acquired the privately held Champion Europe, based in Italy, in an all-cash transaction for the previously announced purchase price of 10 times actual calendar 2016 earnings before interest, taxes, depreciation and amortization, subject to adjustment for cash, debt and working capital. Hanes expects the final purchase price to be approximately €200 million. Champion Europe expects calendar 2016 net sales of more than €190 million and operating profit of approximately €15 million.
The acquisition and expected performance for the balance of 2016 is already reflected in the company’s updated financial guidance that was announced May 31, 2016.
Champion Europe 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 is a great global brand that appeals to consumers worldwide and has great expansion and growth opportunities,” Mambrini said. “In Europe, we capitalize on the Champion heritage from the United States combined with the natural affinity for Italian apparel design.”
HanesBrands’ brands include Hanes, Champion, Playtex, DIM, Bali, Maidenform, JMS/Just My Size, L’eggs, Wonderbra, Nur Die/Nur Der, Lovable and Gear for Sports.