-
Champion Europe, based in Italy, owns the trademark for Champion
in Europe, the Middle East and Africa, while HanesBrands owns Champion
in the Americas, Asia and Australia
-
Combining the Champion businesses will create a
unified growth platform to benefit from the global consumer
growth trend for active apparel
-
Investor conference call and webcast to be held at 9 a.m. EDT today
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Apr. 7, 2016--
HanesBrands (NYSE: HBI), a leading marketer of everyday innerwear and
activewear apparel under world-class brands in the Americas, Europe and
Asia, today announced that it has entered into a definitive purchase
agreement to acquire Champion Europe, which owns the trademark for the Champion
brand in Europe, the Middle East and Africa.
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20160407005302/en/
Hanes has agreed to acquire the privately held Champion Europe, based in
Italy, 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,
operating profit of approximately €15 million, and EBITDA of
approximately €20 million.
The acquisition, which is subject to certain closing conditions, is
expected to close midyear 2016. Hanes intends to take advantage of its
strong balance sheet to fund the acquisition with debt, consistent with
its previously communicated capital allocation strategy.
Champion Europe designs, sources and 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 in Europe will be run as a division of the company’s global
Champion organization. Sauro Mambrini, chief executive officer and
president of Champion Europe, will remain with HanesBrands to oversee
Champion Europe operations.
“This acquisition coupled with the recent purchase of the Champion
business from our licensee in Japan will unite the Champion brand
globally and will give us a powerful platform for growth on every
continent,” said Hanes Chief Operating Officer Gerald W. Evans Jr.
“Sauro Mambrini and the highly capable management team of Champion
Europe will be a great addition to our organization.”
Champion Europe is a leading designer, marketer and distributor of
athletic apparel and accessories across Europe, Africa and the Middle
East. Champion’s distinct brand image, which dates to its
founding in Rochester, New York, in 1919, is defined by an American
athletic heritage and a reputation for providing innovative and durable
products for male and female athletes and teams throughout the world for
a wide variety of sports.
“Champion is a great brand that resonates with consumers
worldwide,” Mambrini said. “In Europe, we have built a business that
reflects the Champion heritage from the United States and then
optimizes a natural affinity for Italian apparel design. Our team is
eager to join the global Champion team, which will benefit the
business in every market served and increase the potential for expansion
into new markets.”
After the acquisition closes, Hanes will update its 2016 financial
guidance to reflect the closing timing, the outlook for Champion Europe,
and any currency considerations.
“This is a great time to do an acquisition,” Hanes Chairman and Chief
Executive Officer Richard A. Noll said. “Our overall business is
trending as expected; our recent acquisitions are performing well; we
have a vision for Champion as a global brand; and we feel good about
delivering double-digit earnings growth in 2016 and for many years to
come.”
Advisors
Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel to
Hanes. For Champion Europe, Stifel is acting as financial advisor and
Gianni, Origoni, Grippo, Cappelli and Partners is serving as legal
advisor.
Webcast Conference Call
Hanes will host a live Internet webcast of its investor conference call
to discuss the acquisition announcement at 9 a.m. EDT today. The webcast
may be accessed on the investor page of the Hanes corporate website, www.Hanes.com/investors.
The call is expected to conclude by 9:30 a.m.
An archived replay of the conference call webcast will be available in
the investors section of the Hanes corporate website. An audio playback
accessible by telephone will be available from approximately noon EDT
today through noon April 14, 2016. The replay will be available by
calling toll-free (855) 859-2056, or by toll call at (404) 537-3406. The
replay pass code is 86882553.
Cautionary Statement Concerning Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements include
all statements that do not relate solely to historical or current facts,
and can generally be identified by the use of words such as “may,”
“believe,” “will,” “expect,” “project,” “estimate,” “intend,”
“anticipate,” “plan,” “continue” or similar expressions. In particular,
among others, statements about the HanesBrands acquisition of Champion
Europe S.p.A. (the “acquisition”), including the expected impact on
HanesBrands’ sales, the anticipated funding of the acquisition and the
expected timing for closing the acquisition are forward-looking
statements. Forward-looking statements inherently involve many risks and
uncertainties that could cause actual results to differ materially from
those projected in these statements. Where, in any forward-looking
statement, we express an expectation or belief as to future results or
events, such expectation or belief is based on the current plans and
expectations of our management, expressed in good faith. However, there
can be no assurance that the expectation or belief will result or will
be achieved or accomplished, and actual results may differ materially
from those contemplated by the forward-looking statements. A number of
important factors could cause actual results to differ materially from
those contemplated by the forward-looking statements, including, but not
limited to our ability to achieve expected synergies and successfully
complete the integration of Champion Europe S.p.A., events that could
give rise to a termination of the acquisition agreement or failure to
receive necessary approvals or funding for the acquisition, the outcome
of any litigation related to the acquisition, and the level of expenses
and other charges related to the acquisition and the funding thereof.
There can be no assurance that the acquisition will be completed, or if
it is completed, that it will close within the anticipated time period
or that the expected benefits of the acquisition will be realized. We
believe these forward-looking statements are reasonable; however, undue
reliance should not be placed on any forward-looking statements, which
are based on current expectations. All forward-looking statements speak
only as of the date hereof. We undertake no obligation to update or
revise forward-looking statements that may be made to reflect events or
circumstances that arise after the date made or to reflect the
occurrence of unanticipated events, other than as required by law.
HanesBrands
HanesBrands, based in Winston-Salem, N.C., is a socially responsible
leading marketer of everyday basic innerwear and activewear apparel in
the Americas, Europe and Asia under some of the world’s strongest
apparel brands, including Hanes, Champion, Playtex, DIM,
Bali, Maidenform, Flexees, JMS/Just My Size, Wonderbra,
Nur Die/Nur Der, Lovable and Gear for Sports. The company
sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and
activewear produced in the company’s low-cost global supply chain. A
member of the S&P 500 stock index, Hanes has approximately 65,300
employees in more than 40 countries and is ranked No. 490 on the Fortune
500 list of America’s largest companies by sales. Hanes takes pride in
its strong reputation for ethical business practices. The company is the
only apparel producer to ever be honored by the Great Place to Work
Institute for its workplace practices in Central America and the
Caribbean. For six consecutive years, Hanes has won the U.S.
Environmental Protection Agency Energy Star sustained excellence/partner
of the year award – the only apparel company to earn these honors. The
company ranks No. 246 on Newsweek magazine’s green list of 500 largest
U.S. companies. More information about the company and its corporate
social responsibility initiatives, including environmental, social
compliance and community improvement achievements, may be found at www.Hanes.com/corporate.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160407005302/en/
Source: HanesBrands
HanesBrands
News Media, contact:
Matt Hall, +1-336-519-3386
or
Analysts
and Investors, contact:
T.C. Robillard, +1-336-519-2115