Hanesbrands Sells Champion to Authentic Brands in $1.2 Billion Deal

The transaction, potentially worth up to $1.5 billion, aims to streamline Hanesbrands' focus on innerwear and reduce debt.

Hanesbrands will receive approximately $900 million in net proceeds from the sale.
The deal includes a contingent cash consideration of up to $300 million based on performance thresholds.
Champion's sales had declined by 30% in the U.S. last year due to challenging market dynamics.
Authentic Brands, which owns Reebok and Forever 21, plans to expand into the sportswear market with this acquisition.
Hanesbrands' shares surged over 12% following the announcement.