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- HanesBrands Completes Sale of Champion Brand to Authentic Brands Group
HanesBrands Completes Sale of Champion Brand to Authentic Brands Group
Slice of Retail Team
October 03, 2024
Key Highlights:
HanesBrands completes the sale of Champion intellectual property to Authentic Brands Group.
$1 billion in debt repayment expected in the second half of 2024 due to transaction and internal cash generation.
Focus on topline growth, margin expansion, and double-digit EPS growth moving forward.
Champion team contributions recognized, with well wishes for the brand’s future journey.
Source: Business Wire
Notable Quote:
“Today marks a major milestone on our journey to strengthen and simplify our business and is the culmination of a significant team effort to position HanesBrands on the optimal path for the future. With the successful completion of this transaction, combined with our internal cash generation, we expect to pay down approximately $1 billion of debt in the second half of 2024. I’d like to express my gratitude to the global Champion team for their contributions. We wish them well as the Champion brand writes the next chapter of its storied journey.”
Our Take:
This transaction marks a pivotal moment for HanesBrands as it looks to streamline operations and focus on sustainable growth. The expected reduction of $1 billion in debt by the end of 2024 signals a disciplined approach to improving the balance sheet. The emphasis on topline growth, margin expansion, and double-digit earnings per share growth suggests a promising outlook for shareholders, while the divestiture of the Champion brand allows HanesBrands to hone in on its core business strengths.