HanesBrands May Sell Champion Unit

HanesBrands (Winston-Salem, N.C.) has unveiled plans to evaluate strategic options for its global Champion business, which operates 48 stores in the U.S. As part of that process, its board will consider several alternatives to maximize shareholder value, including a potential sale or other strategic transaction, as well as continuing to operate the business as part of HanesBrands.

“Champion is a renowned global lifestyle brand, with a storied heritage in sports as the pioneer of American athletic wear,” said Board Chairman Ronald Nelson. “In recent years, the executive leadership team has implemented significant structural improvements within Champion that have resulted in greater distinction between the company’s innerwear and activewear businesses. With this in mind, and after careful consideration, we have commenced a comprehensive review of strategic options for the global Champion business. We are committed to working with our advisors to identify the right path forward that enables both Champion and HanesBrands to reach their fullest potential and maximizes value.”

Adds CEO Steve Bratspies, “We are executing a strategy that is based on leveraging our iconic brands and competitive advantages to drive accelerated growth and profitability, while simplifying and focusing all aspects of the business. With this as our foundation, we are continuing to take the actions necessary to adapt and ensure all of our brands in both innerwear and activewear, around the world, are on the optimal path to achieve long-term success.”

HanesBrands noted that there is no guarantee that the assessment process will result in it pursuing any particular action regarding Champion. The company also said it has not set a timetable for completing this process and may suspend or terminate it at any time. Moreover, HanesBrand does not intend to make any further announcements regarding the review unless and until it determines that is appropriate or necessary.

Assisting the company in the assessment are financial advisors Goldman Sachs & Co. LLC and Evercore and legal advisors Jones Day and Kirkland & Ellis LLP.