Global marketer of everyday basic apparel HanesBrands said it has completed the acquisition of Knights Apparel, a leading seller of licensed collegiate logo apparel in the mass retail channel.
Knights Apparel sells T-shirts, sweatshirts and other sports apparel with college logos and graphics primarily to mass merchant retailers.
Knights markets apparel representing 400 of the largest U.S. colleges and universities, while Hanes’ Gear for Sports division and is currently a seller of licensed collegiate apparel in university bookstores.
“In an all cash transaction, HanesBrands acquired Knights from Merit Capital Partners valuing Knights at approximately $200 million on an enterprise basis,” it said in a press release.
CEO Richard Noll said, “The acquisition of Knights Apparel is an excellent value-creating opportunity for our growing Activewear segment and our shareholders.”
“The integration of Knights Apparel will help us take advantage of our existing Gear for Sports licensed collegiate apparel business, our expertise and size in the mass retail channel, and our low-cost global supply chain,” he added.
With the addition of Knights, Hanes expects annualised sales of licensed and graphic apparel of more than $450 million with significant growth potential for college licensed brands.
Hanes funded the acquisition with cash on hand and short-term borrowings on its revolving credit facility.
Goldman, Sachs & Co. served as exclusive financial advisor to Hanes, while King & Spalding LLP served as legal counsel to Hanes.
HanesBrands markets some of apparel brands which include Hanes, Champion, Playtex, DIM, Bali, Maidenform, Flexees, JMS/Just My Size, Wonderbra, Nur Die/Nur Der, Lovable and Gear for Sports.
The company sells t-shirts, bras, panties, shapewear, men’s underwear, children’s underwear, socks, hosiery, and activewear produced in the company’s low-cost global supply chain.
Ranked No. 530 on the Fortune 1000 list, Hanes has approximately 59,500 employees in more than 35 countries and takes pride in its strong reputation for ethical business practices.
Hanes is a U.S. Environmental Protection Agency Energy Star 2014, 2013 and 2012 Sustained Excellence Award winner and 2011 and 2010 Partner of the Year award winner. (AR)
Fibre2fashion News Desk - India