Hanesbrands Inc. has completed its acquisition of GearCo, Inc., known as Gear For Sports, a seller of licensed logo apparel in collegiate bookstores and other channels.
Hanesbrands acquired Gear For Sports, which sells embellished licensed apparel under several brand names, including Hanesbrands’ Champion label, for $55 million and the retirement of approximately $172 million of debt.
Gear For Sports, which has sales of approximately $225 million a year, is expected to contribute approximately $30 million in sales to Hanesbrands’ revenue in the fourth quarter. Hanesbrands included the expected contributions from Gear For Sports in its 2010 sales and earnings guidance issued with the announcement of its third-quarter results on Oct. 27.
“We are very excited to have the strong Gear For Sports operation and management team join Hanesbrands and its powerful global supply chain,” Hanesbrands Chairman and Chief Executive Officer Richard A. Noll said. “Together we have tremendous opportunities to drive new growth and take additional market share in the licensed college, resort and golf channels.”
Hanesbrands said the The Gear For Sports acquisition “significantly strengthens” the company's strategy of creating stronger branded and defensible businesses in its Outerwear segment, which has included building its Champion activewear brand and increasing sales of higher-margin graphic apparel. With the acquisition, approximately 20 percent to 25 percent of Hanesbrands' Outerwear Segment sales will be graphic apparel.
“We are creating very strong capabilities to serve the large and growing embellished apparel market,” Noll said. “Gear For Sports complements our separate retail graphic apparel business and significantly strengthens our Outerwear segment.”
Gear For Sports President Larry Graveel said, “We are looking forward to taking our success to the next level as part of Hanesbrands. Combining our business model in licensed logo apparel with the assets of Hanesbrands will enable us to extend and expand those attributes that set us apart as an industry leader. It’s a seamless and natural fit between two organizations that have strong customer-focused, growth-oriented cultures.”
