Hanesbrands buys college clothing firm Knights Apparel
US apparel maker Hanesbrands has signed a deal to buy licensed collegiate logo firm Knights Apparel from Merit Capital Partners.
The all-cash transaction is valued at around US$200, on an enterprise-value basis. Knights, which sells T-shirts, sweatshirts and sports apparel with college logos primarily to mass merchant retailers, is forecast to have sales of around $180, for fiscal 2015.
Knights sells apparel representing 400 of the largest US colleges and universities, while Hanes’ Gear for Sports division is already a seller of licensed collegiate apparel in university bookstores.
Combined, Hanesbrands expects annualised sales of around $450m, creating a “best-in-class supplier” of licensed collegiate apparel with both low-cost and quick-turn supply capability, supported by company-owned garment production and graphic embellishment facilities.
“This is an exciting acquisition opportunity to leverage 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,” said Hanesbrands CEO Richard Noll. “Combining the two companies is a great way to create value.”
The acquisition, which is subject to antitrust review and other customary closing conditions, is expected to close early in the second-quarter 2015.
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