Authentic Brands Group (ABG) has brought the athletic apparel brand, Champion, under its wing. This celebration follows a $1.2 billion acquisition of the sportswear and casual wear brand from Hanesbrands Inc. Champion’s annual retail sales, approximating to $3 billion globally, names it the second-largest brand acquisition in Authentic’s history.
ABG hailed this acquisition as building on its role as the largest and leading sports and entertainment licensing company worldwide. Champion’s athletic roots, planted in gym apparel, faced notable competition with the up-and-coming players in the athleisure market. It was no secret that ABG was fishing in the athletic sector for potential acquisitions, being a possible buyer for Champion in earlier discussion stages.
Champion’s sale came at a time when Hanesbrands’ financial pressure began to mount following investor calls for the company to reduce its hefty $3.6 billion debt. Even though Champion sales did not meet projected figures, the forward-looking ABG oversaw the immense potential Champion was bound to offer.
The founder, chairman, and CEO, Jamie Salter of Authentic, praised Champion’s role in leveraging quality and innovative products over the last century. Giving Champion’s growth strategy a green light, Salter voiced his optimistic vision for the brand backed by key partners. He aimed at embracing Champion’s rich history while fostering innovation and extending its market reach to new demographics.
Champion, the original sweatshirt and activewear pioneer, owns a bold plan with a legendary status. It’s primed to scale its heights with Authentic’s brilliant line-up of partners shooting at the brand’s propulsion. With this vision, the brand is equipped to motivate athletes and active lifestyle enthusiasts for the foreseeable future.
Champion’s international appeal attracts the attention of consumers in over 90 countries. International consumers account for about half of its business platform. ABG, through branding partnerships, is planning to magnify this international business across Europe, Asia, and Australia. This progress will encompass new categories and territorial expansions in the forthcoming months.
Further plans by ABG involve maintaining Champion’s profound influence on athletic culture via a network of superior operating partners worldwide. In particular, Champion’s enduring U.S collegiate apparel business will continue its operations under GearCo, managed by Ames Watson, backed by an investor, Fanatics.
Ames Watson, the proud possessor of powerful retail and manufacturing knowledge will uphold Champion’s operational infrastructure. This includes the sports apparel division that heralds Gear for Sports, Knights Apparel, and Champion Teamwear.
A long-established partner, AMG, will oversee Champion’s core business in the U.S and Canada through its forthcoming affiliates. Notably, these include High Life for activewear, Basic Resources for underwear and sleepwear, USA Legwear for legwear, and Fit for Life for fitness accessories. Other partners will feature BBC for footwear, Gildan for printwear, and the Falic Group, primarily responsible for apparel and accessories in Central and South America.
Illuminating Champion’s strong co-existence with its partners, IB Group will unceasingly pursue its omni-channel strategy to fortify the brand’s position in the Mexican market. Accomplishing a dominant digital and physical presence throughout wholesale, retail and e-commerce for Champion, IB has proven its value in fueling the apparel, footwear, and accessories categories.
