Authentic Brands Group (ABG) has successfully concluded the acquisition of Champion, marking its most significant deal since acquiring Reebok.
This acquisition, which began in June, is valued at up to $1.5 billion and paves the way for new operational collaborations in North and Latin America.
Authentic Brands Group, a global brand development, marketing and entertainment company, has acquired Champion from HanesBrands in a deal initially valued at $1.2 billion. The final consideration could reach up to $1.5 billion, contingent upon achieving specific performance targets. Champion, with its annual global retail sales nearing $3 billion, stands as ABG’s second-largest acquisition following the purchase of Reebok.
This monumental acquisition is not only a significant milestone for ABG but also aims to fortify Champion’s market position on a global scale. The strategic move is expected to enhance operational efficiencies and drive growth across various regions.
In North America, ABG has appointed AMG Companies to manage Champion’s core business operations in the United States and Canada. Additionally, a long-term licensing agreement has been established with GearCo, operated by Ames Watson, to oversee Champion’s collegiate apparel business in the U.S. BBC International will handle the footwear segment, while Gildan has been chosen for printwear.
These partnerships are designed to leverage the unique strengths of each partner to support Champion’s continued expansion and innovation within the North American market. The synergy between these companies and Champion is anticipated to be a key driver of success.
Falic Group has been designated as the primary partner for Champion’s clothing and accessories in Central and South America.
In Mexico, IB Group will lead operations, focusing on enhancing brand visibility and market penetration.
Jamie Salter, founder, chairman, and CEO of ABG, expressed his enthusiasm for the acquisition: “Champion has set the standard for quality and innovation for over a century. With the strong backing of our partners at GearCo, BBC, and AMG Companies, we’re in a prime position to accelerate Champion’s growth globally.”
Salter emphasized that the company plans to announce additional partnerships in new categories and regions, including Europe, Asia, and Australia, in the coming months. This proactive approach is aimed at broadening Champion’s market reach and consumer base.
The strategic partnerships and future expansions are seen as pivotal steps in not only preserving Champion’s rich heritage but also ensuring its relevance in a rapidly evolving market.
Champion, known for its high-quality and innovative sportswear, has been a significant player in the global retail market, with nearly $3 billion in annual sales.
The acquisition by ABG aims to harness this legacy and further strengthen Champion’s market position through strategic initiatives and partnerships.
The acquisition of Champion by Authentic Brands Group signifies a pivotal step towards the brand’s global expansion and operational enhancement.
With established and new strategic partnerships, Champion is well-positioned to continue its legacy of quality and innovation in the sportswear industry.
