HanesBrands (NYSE: HBI) announced on Tuesday that its Board of Directors and executive leadership team are evaluating strategic alternatives for the company's global Champion business, with the aim of maximizing shareholder value. The Winston-Salem, N.C.-based apparel company is considering a range of options, including a potential sale or other strategic transaction, as well as continuing to operate the business as part of HanesBrands.
Chairman of the Board of Directors, Ronald L. Nelson, stated that the company's leadership continuously assesses their operations and brands to ensure the best positioning for growth and shareholder value creation. He highlighted that Champion is a globally recognized lifestyle brand with a rich heritage in sports as the pioneer of American athletic wear. Nelson added that recent structural improvements within Champion have resulted in greater distinction between HanesBrands' innerwear and activewear businesses.
The CEO of HanesBrands, Steve Bratspies, asserted that the company is executing a strategy based on leveraging their iconic brands and competitive advantages to drive accelerated growth and profitability. He emphasized that the company is taking necessary actions to adapt and ensure all their brands in both innerwear and activewear are on an optimal path to long-term success.
However, HanesBrands clarified that there can be no certainty that this review process will result in any particular transaction or strategic outcome for Champion. The company has not set a deadline for concluding this process and reserves the right to suspend or terminate the review at any time.
Financial advisory services during this process are being provided by Goldman Sachs & Co (NYSE:GS). LLC and Evercore, while Jones Day and Kirkland & Ellis LLP are serving as legal advisors to HanesBrands.
HanesBrands is known for its everyday apparel beloved by consumers globally, with brands such as Hanes, Champion, and Bonds under its portfolio. The company employs 51,000 associates in 32 countries.
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