Authentic Brands Inks Licensees for Champion’s Growth

Authentic Brands Group has a new addition to celebrate as it adds athleticwear brand Champion to its portfolio.

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Authentic said on Monday that it completed its $1.2 billion acquisition of the sportswear and casual wear brand from Hanesbrands Inc. Champion is now the second-largest brand acquisition in Authentic’s history, generating nearly $3 billion in global retail sales annually.

“This acquisition enhances Authentic’s position as the largest sports and entertainment licensing company worldwide,” the brand management firm said.

Champion’s roots are in gym apparel, but it began facing competition from newer players entering the athleisure market. Authentic was one of the companies mentioned early in the sale process as as possible buyer, since it was known that the brand management firm was casting its eyes on the athletic sector.

Hanesbrands began exploring options for Champion a year ago after activist investor Barington Capital urged the North Carolina apparel company to shave down its $3.6 billion debt bill last month. Champion sales had fallen short of expectations, and the highly leveraged Hanesbrands began feeling financial pressure.

“Champion has set the standard for quality and innovation for over a century,” Authentic founder, chairman and CEO Jamie Salter said. “This acquisition marks a significant milestone, not just for Champion, but for Authentic as well. 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 said the plan is to honor Champion’s rich heritage while driving innovation and expanding its reach to new markets and consumers.

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“As the originator of the sweatshirt and a pioneer in activewear, Champion holds a legendary place in history. With a bold plan for the future, we’re ready to build on that legacy alongside our incredible partners, driving the brand forward and continuing to inspire athletes and active lifestyles for years to come,” said Authentic’s president and chief brand officer Nick Woodhouse.

The Champion brand is sold in more than 90 countries, and nearly half of its business originates from international consumers. Authentic will grow the international business through brand partnerships across new categories and territories throughout Europe, Asia, and Australia in the coming months, the company said.

Authentic plans to continue Champion’s influence in athletic culture through a network of best-in-class operating partners worldwide. Champion’s long-term U.S. collegiate apparel business will continued under a new license granted to GearCo, which will be managed and operated by Ames Watson, with Fanatics as an investor.

“Our deep expertise in apparel and operations, especially in the collegiate market, makes this a perfect fit,” concluded Ames Watson partners and co-founders Tom Ripley and Lawrence Berger. Ames Watson has deep retail and manufacturing expertise. The company’s plan is to maintain Champion’s operational infrastructure, which includes the brand’s sport apparel division. That division includes Gear for Sports, Knights Apparel and Champion Teamwear.

AMG, a long-standing partner of Authentic, will manage Champion’s core business in the U.S. and Canada through its affiliates. Those affiliates include High Life for activewear, Basic Resources for underwear and sleepwear, USA Legwear for legwear, and Fit for Life for fitness accessories. Other partners include BBC for footwear and Gildan for printwear.

The Falic Group will be Champion’s primary partner for apparel and accessories in Central and South America. IB Group, Champion’s partner for more than four years, will continue its omni-channel strategy to solidify the brand’s position in the Mexican market. During its four years as brand partner, IB has built a robust digital and physical presence across wholeale, retail and e-commerce for the apparel, footwear and accessories categories.

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