Authentic Brands Group LLC entered into an agreement to acquire Global Champion Business of Hanesbrands Inc. (NYSE:HBI) for $1 billion on June 4, 2024. As per consideration, Authentic Brands paid $1.2 billion, with the potential to reach up to $1.5 billion through an additional contingent cash consideration of up to $300 million. The acquisition of Champion is subject to certain standard closing conditions, including regulatory approval and antitrust approval. The transaction has been unanimously approved by the HanesBrands board of directors. The transaction is expected to close in second half of 2024. In line with HanesBrands? commitment to debt reduction, the Hanesbrands 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.

Goldman Sachs & Co. LLC and Evercore acted as financial advisors and William N. Lay, Allison M. Wein and Daniel Wolf, Jack Coles, Andrea Agathoklis Murino, Alasdair Balfour, J. Robert Fowler, Jared Whalen, Sara B. Zablotney, Vivek Ratnam, Seth Traxler, Bernadette Coppola, Matthew Antinossi and Christie Alcala of Kirkland & Ellis LLP and Joel May of Jones Day acted as legal advisors to HanesBrands. J.P. Morgan Securities LLC and BofA Securities acted as financial advisors and Michael Anastasio, Justin Hamill and Michael L. Montgomery of Latham & Watkins LLP acted as legal advisor to Authentic.