Brand management firms WHP Global and Authentic Brands Group are both interested in buying Champion from its parent company Hanesbrands (NYSE:HBI), which is considering offloading the sportswear line amid pressure from activist investors.
Hanesbrands announced it was evaluating strategic options for Champion in late September — a little over a month after activist firm Barington Capital Group began pressuring the company to cut costs and generate cash as sales fall. At the time, Hanesbrands said those options could include a potential sale of Champion or another type of strategic transaction. It also said it could hold on to the brand.
Hanesbrands has seen wide interest in acquiring Champion from a mix of buyers, including WHP and Authentic Brands, according to people familiar with the matter. Interested potential buyers include strategics and sponsors.
Champion is reputed to have estimated annual sales around $2 billion.
A deal isn’t close to completion, and if Hanesbrands moves forward with a sale, it’s not expected to select a buyer until 2024.
“We are in the initial stages of evaluating strategic options and the right path forward for the global Champion business, and at the same time, remain committed to advancing Champion’s new, disciplined channel segmentation strategy, energizing the brand and leveraging the work already completed to globalize product design and segment and streamline our supply chain,” said a Hanesbrands spokesperson.
HBI shares lost six cents, or 1.4%, to $4.13.
