Hanesbrands now officially owns Knights Apparel, an acquisition that cost the company $200 million in cash on hand. Hanesbrands originally announced its agreement to purchase the college-branded T-shirts and sweatshirts seller in February.
Knights Apparel sells apparel representing 400 of the largest U.S. colleges and universities, and with Hanes’ already leading Gear for Sports division, the acquisition makes Hanesbrands the leading seller of licensed college logo apparel in both the retail and college bookstore channels.
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.”
The acquisition from Merit Capital closed on April 6 and Hanes said it would discuss expected acquisition-related expenses and sales and profit contributions for 2015 on its first quarter investment call slated for late April.
With the new addition, Hanes said it expects annualized sales of licensed and graphic apparel of more than $450 million with “significant growth potential” for college licensed brands.
