With the Acquisition, HanesBrands Becomes the Leading Seller of
Licensed College Logo Apparel in Both the Retail and College Bookstore
Channels
WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Apr. 8, 2015--
HanesBrands (NYSE: HBI), a leading global marketer of everyday basic
apparel under world-class brands, today announced that it has completed
the acquisition of Knights Apparel, a leading seller of licensed
collegiate logo apparel in the mass retail channel.
Knights Apparel sells T-shirts, sweatshirts and other sports apparel
with college logos and graphics primarily to mass merchant retailers.
Knights sells apparel representing 400 of the largest U.S. colleges and
universities, while Hanes’ Gear for Sports division is already a leading
seller of licensed collegiate apparel in university bookstores.
The acquisition from Merit Capital Partners closed as expected on April
6, 2015, with the all-cash transaction valuing Knights at approximately
$200 million on an enterprise basis.
Hanes will discuss the expected acquisition-related expenses and sales
and profit contributions for 2015 on its first-quarter 2015 investor
conference call anticipated to be held in late April.
“We’d like to welcome Knights Apparel to the Hanes team,” Hanesbrands
Chairman and Chief Executive Officer Richard A. Noll said. “The
acquisition of Knights Apparel is an excellent value-creating
opportunity for our growing Activewear segment and our shareholders. We
are eager to begin the integration of Knights Apparel to take advantage
of our existing Gear for Sports licensed collegiate apparel business,
our expertise and size in the mass retail channel, and our low-cost
global supply chain.”
With the addition of Knights, Hanes expects annualized sales of licensed
and graphic apparel of more than $450 million with significant growth
potential for college licensed brands. Hanes is the best-in-class
supplier of licensed collegiate apparel using both low-cost and
quick-turn service capabilities primarily supported by a company-owned
supply chain of garment production and graphic embellishment.
Hanes funded the acquisition with cash on hand and short-term borrowings
on its revolving credit facility.
Goldman, Sachs & Co. served as exclusive financial advisor to Hanes.
King & Spalding LLP served as legal counsel to Hanes.
Cautionary Statement Concerning Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements include
all statements that do not relate solely to historical or current facts,
and can generally be identified by the use of words such as “may,”
“believe,” “will,” “expect,” “project,” “estimate,” “intend,”
“anticipate,” “plan,” “continue” or similar expressions. In particular,
among others, statements about the HanesBrands acquisition of Knights
Apparel (the “acquisition”), including statements about the value
creation potential of the business, as well as the benefits anticipated
from the acquisition, are forward-looking statements. Forward-looking
statements inherently involve many risks and uncertainties that could
cause actual results to differ materially from those projected in these
statements. Where, in any forward-looking statement, we express an
expectation or belief as to future results or events, such expectation
or belief is based on the current plans and expectations of our
management, expressed in good faith. However, there can be no assurance
that the expectation or belief will result or will be achieved or
accomplished, and actual results may differ materially from those
contemplated by the forward-looking statements. A number of important
factors could cause actual results to differ materially from those
contemplated by the forward-looking statements, including, but not
limited to our ability to achieve expected synergies and successfully
complete the integration of Knights Apparel the level of expenses and
other charges related to the acquisition and the funding thereof, and
other risks identified from time to time in our most recent Securities
and Exchange Commission reports, including our annual report on Form
10-K and quarterly reports on Form 10-Q, as well as in the investors
section of our corporate website at www.Hanes.com/investors.
We believe these forward-looking statements are reasonable; however,
undue reliance should not be placed on any forward-looking statements,
which are based on current expectations. All forward-looking statements
speak only as of the date hereof. We undertake no obligation to update
or revise forward-looking statements that may be made to reflect events
or circumstances that arise after the date made or to reflect the
occurrence of unanticipated events, other than as required by law.
HanesBrands
HanesBrands, based in Winston-Salem, N.C., is a socially responsible
leading marketer of everyday basic apparel in the Americas, Europe and
Asia under some of the world’s strongest apparel brands, including Hanes,
Champion, Playtex, DIM, Bali, Maidenform,
Flexees, JMS/Just My Size, Wonderbra, Nur Die/Nur Der,
Lovable and Gear for Sports. The company sells T-shirts,
bras, panties, shapewear, men’s underwear, children’s underwear, socks,
hosiery, and activewear produced in the company’s low-cost global supply
chain. Ranked No. 530 on the Fortune 1000 list, Hanes has approximately
59,500 employees in more than 35 countries and takes pride in its strong
reputation for ethical business practices. Hanes is a U.S. Environmental
Protection Agency Energy Star 2014, 2013 and 2012 Sustained Excellence
Award winner and 2011 and 2010 Partner of the Year award winner. The
company has been ranked on Newsweek magazine’s list of Top 500 greenest
U.S. companies. More information about the company and its corporate
social responsibility initiatives, including environmental, social
compliance and community improvement achievements, may be found at www.Hanes.com/corporate.
Source: HanesBrands
HanesBrands
News Media, contact:
Matt Hall, 336-519-3386
or
Analysts
and Investors, contact:
T.C. Robillard, 336-519-2115