Transaction Valued at $1.2 Billion With
Potential to Achieve $1.5 Billion Based on Contingent Cash
Consideration of up to $300 Million
Increased Focus on Global Innerwear Business
and Accelerated Debt Paydown Further Positions Company to Deliver
Enhanced Value for Shareholders
HanesBrands (NYSE: HBI), a global leader in iconic apparel
brands, today announced that it has entered into a definitive
agreement to sell the intellectual property and certain operating
assets of the Company’s global Champion business to Authentic
Brands Group (“Authentic”) for a transaction value of $1.2 billion,
with the potential to reach up to $1.5 billion through an
additional contingent cash consideration of up to $300 million
based on achievement of performance thresholds. This agreement,
which has been unanimously approved by the HanesBrands Board of
Directors, is the successful conclusion of the Company’s previously
announced evaluation of a range of strategic options for the global
Champion business.
HanesBrands has made significant progress in recent years to
reignite its innerwear business, increase market share, attract
younger consumers, and strengthen its operating model. Upon
completion of the transaction, the Company intends to focus on
extending its leadership position in the innerwear category and
generating above-market growth through continued consumer-centric
product innovation and increased investment across its portfolio of
leading brands, including Hanes, Bonds, Maidenform, and Bali.
Bill Simon, Chairman of the Board, said, “Following a thorough
review of options for the global Champion business with the support
of our financial and legal advisors, we are pleased to have reached
this agreement with Authentic Brands Group that we believe
maximizes value for Champion and best positions HanesBrands for
long-term success. Importantly, we believe this transaction will
enable the Company to accelerate its debt reduction while
positioning HanesBrands to deliver consistent growth and cash flow
generation through a focused strategy on advancing its leading
innerwear brands and optimizing its world-class supply chain.”
Steve Bratspies, CEO, said, “Today’s announcement is the
culmination of significant effort by our teams to position all of
our brands on the optimal path for the future. Over the past three
years, we have taken necessary actions to enhance the Company’s
operations and financial performance – returning to historical
gross margins, reducing our cost structure, lowering our debt
levels, and generating consistent cash flow. The successful
completion of this transaction further simplifies our business,
deleverages our balance sheet and enhances the Company’s operations
and financial performance. As we begin the next chapter for
HanesBrands, we believe we’re in an even stronger position to
further extend our leadership in innerwear, pursue new cost
reduction opportunities as we ensure we have the right operating
structure in place, and advance our multi-year flywheel to drive
strong shareholder returns.”
Transaction Details and Use of Proceeds
The transaction remains subject to customary closing conditions
and is expected to be completed in the second half of 2024.
Subsequent to the closing, HanesBrands will provide certain
transition services for Champion, including operating the business
in select regions through a transition period.
HanesBrands expects net proceeds from the transaction of
approximately $900 million, including working capital adjustments
and other customary transaction costs and excluding the contingent
cash consideration. In line with HanesBrands’ commitment to debt
reduction, the Company will utilize all net proceeds from the
transaction to accelerate its reduction of debt and expects
meaningful deleveraging on a net debt-to-adjusted EBITDA basis.
On a trailing 12-month basis as of the end of the first quarter
2024, the global Champion business generated approximately $75
million of adjusted EBITDA, which is net of approximately $60
million of stranded costs. The Company has specific plans to remove
all stranded costs within a year of the transaction closing as it
completes the transition of the business.
The Company intends to classify Champion as discontinued
operations in the second quarter of 2024 and as a result, expects
to update its full-year 2024 guidance in conjunction with the
release of its second-quarter earnings results.
Advisors
Goldman Sachs & Co. LLC and Evercore are serving as
financial advisors to HanesBrands, and Kirkland & Ellis LLP and
Jones Day are serving as its legal advisors.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains certain information that may
constitute forward-looking statements, as defined under U.S.
federal securities laws. 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,” “could,” “will,” “expect,” “outlook,”
“potential,” “project,” “estimate,” “future,” “intend,”
“anticipate,” “plan,” “continue” or similar expressions, including
statements herein regarding the expected benefits, financial impact
and timing of the sale of the global Champion business, including
the use of proceeds therefrom for debt reduction. However, the
absence of these words or similar expressions does not mean that a
statement is not forward-looking. All statements with respect to
our intent, belief and current expectations about our strategic
direction, prospects and future results are forward-looking
statements and are subject to risks and uncertainties that could
cause actual results to differ materially from those implied or
expressed by such statements. These risks and uncertainties
include, but are not limited to, such things as, whether and when
the required regulatory approvals for the proposed sale of the
global Champion business will be obtained, whether and when the
closing conditions will be satisfied and whether and when the
proposed sale of the global Champion business will close, if at
all; our ability to execute, and realize benefits, successfully, or
at all, from, the proposed sale of the global Champion business;
trends associated with our business, our ability to implement
successfully, or at all, our Full Potential transformation plan
and, if the sale is not completed, the global Champion performance
plan; the rapidly changing retail environment and the level of
consumer demand; the effects of any geopolitical conflicts
(including the ongoing Russia-Ukraine conflict and Middle East
conflicts) or public health emergencies or severe global health
crises, including effects on consumer spending, global supply
chains, critical supply routes and the financial markets; our
ability to deleverage on the anticipated time frame or at all,
which could negatively impact our ability to satisfy the financial
covenants in our Credit Agreement or other contractual
arrangements; any inadequacy, interruption, integration failure or
security failure with respect to our information technology; future
intangible assets or goodwill impairment due to changes in our
business, market conditions, or other factors, including any sale
of the Champion business; significant fluctuations in foreign
exchange rates; legal, regulatory, political and economic risks
related to our international operations; our ability to effectively
manage our complex international tax structure; our future
financial performance; and other risks identified from time to time
in our most recent Securities and Exchange Commission reports,
including our annual report on Form 10-K and quarterly reports on
Form 10-Q. Since it is not possible to predict or identify all of
the risks, uncertainties and other factors that may affect future
results, the above list should not be considered a complete list.
Any forward-looking statement speaks only as of the date on which
such statement is made, and HanesBrands undertakes no obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise, other than as
required by law.
About HanesBrands
HanesBrands (NYSE: HBI) makes everyday apparel that is known and
loved by consumers around the world for comfort, quality and value.
Among the company’s iconic brands are Hanes, the leading basic
apparel brand in the United States; Champion, an innovator at the
intersection of lifestyle and athletic apparel; Bonds, which is
setting new standards for design and sustainability; Maidenform,
America’s number one shapewear brand; and Bali, America’s number
one national bra brand. HBI employs 48,000 associates in
approximately 30 countries and has built a strong reputation for
workplace quality and ethical business practices. The company, a
longtime leader in sustainability, has set aggressive 2030 goals to
improve the lives of people, protect the planet and produce
sustainable products. HBI is building on its unmatched strengths to
unlock its Full Potential and deliver long-term growth that
benefits all of its stakeholders.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240604922327/en/
News Media contact: Nicole Ducouer, (336) 986-7090 Analysts and
Investors contact: T.C. Robillard, (336) 519-2115
Grafico Azioni Hanesbrands (NYSE:HBI)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Hanesbrands (NYSE:HBI)
Storico
Da Gen 2024 a Gen 2025
