VIENNA (dpa-AFX) - HanesBrands (HBI) announced a purchase agreement to acquire Champion Europe, based in Italy, in an all-cash deal. The company said the purchase price will be 10 times actual calendar 2016 earnings before interest, taxes, depreciation and amortization, subject to adjustment for cash, debt and working capital.
Champion Europe owns the trademark for the Champion brand in Europe, the Middle East and Africa. Champion Europe designs, sources and sells Champion athletic apparel wholesale to retailers and directly to consumers via company-owned retail stores. The company's largest wholesale markets are Italy, Greece, Spain and Scandinavia, while the company operates approximately 130 retail stores in Italy and Greece. Champion Europe expects 2016 net sales of more than 190 million euros, operating profit of approximately 15 million euros, and EBITDA of approximately 20 million euros.
'This acquisition coupled with the recent purchase of the Champion business from our licensee in Japan will unite the Champion brand globally and will give us a powerful platform for growth on every continent,' said Hanes COO Gerald Evans Jr.
After the acquisition closes, Hanes will update its 2016 financial guidance.
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