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HanesBrands Completes Acquisition of Knights Apparel

Wednesday, April 8, 2015 8:30 am EDT
HanesBrands Completes Acquisition of Knights Apparel

With the Acquisition, HanesBrands Becomes the Leading Seller of Licensed College Logo Apparel in Both the Retail and College Bookstore Channels

"We’d like to welcome Knights Apparel to the Hanes team"

WINSTON-SALEM, N.C.--(BUSINESS WIRE)--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.

 

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HanesBrands
News Media, contact:
Matt Hall, 336-519-3386
or
Analysts and Investors, contact:
T.C. Robillard, 336-519-2115

contacts
  • HanesBrands

    1000 E. Hanes Mill Road

    Winston-Salem, NC 27105

    (336) 519-8080

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HanesBrands is an Energy Star partner and the only apparel company to earn sustained excellence honors.