HanesBrands has signed an agreement to sell its Champion brand business to Authentic Brands Group for a transaction value of $1.2 billion.

The transaction has the potential to raise up to $1.5 billion through additional cash of up to $300 million based on the achievement of performance thresholds, the company said in a release.

Commenting on the development, the company’s chairman of the board, Bill Simon, said: “After a thorough review of the options for the Global Champion business with the support of our financial and legal advisors, we are delighted to have reached this agreement with Authentic Brands Group. We believe that championing and positioning the best for long-term success is of utmost importance to HanesBrands.

Following the completion of the transaction, HanesBrands plans to focus on its innerwear category for continued consumer-oriented product innovation and increased investment in its portfolio of brands, including Hanes, Bonds, Maidenform, and Bali. can generate above-market growth through

“The successful completion of this transaction further simplifies our business, reduces our balance sheet and enhances the company’s operations and financial performance. As we begin the next chapter for HanesBrands, we are confident that we will are in an even stronger position to further extend their leadership in innerwear,” added Steve Bratspies, CEO of Hanes Brands.

The Company will use all net proceeds from the transaction to accelerate its debt reduction and expects meaningful deleveraging on a net debt-to-adjusted EBITDA basis.

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