Hanes Brands, manufacturer of Hanes and Champion activewear and graphic apparel, purchased Alternative Apparel in a cash deal valued at around $60 million.
This deal permitted the brand to create value and generate growth opportunities in support of its activewear strategy. “We will be able to leverage our global low cost supply chain, which is a recognised social, environmental and ethical leader, with another strong brand to expand our market and channel penetration, including online.” Hanes CEO Gerald Evans Jr. announced.
Hanes has been aggressively adding to its portfolio through the acquisition of licensed logo companies Gear for Sports — which sells through college bookstores — and Knights Apparel, which focuses on the mass tier. It also acquired GTM Sportswear — makers of custom high school team and fan apparel. Hanes also launched Hanes Ink, an online business that creates custom college and high school garments.
Hanes also released preliminary third quarter results where the company estimates net sales will be around $1.8 billion with earnings per share of 55 cents.
Alternative Apparel, which had been outsourcing, will now be able to tap into Hanes’ owned factories.
Starting operations in 1995, Alternative Apparel has been known for comfort. Hanes estimates the company’s full-year net sales will reach $70 million.
Alternative CEO Evan Toporek, will continue to lead the business, disclosed that he’s looking forward to scaling the business through the Hanes supply chain. “Partnering with a like-minded company that is a long time industry innovator and leader will benefit our employees, customers and brand as a whole.
“Alternative Apparel has an attractive business model, a very strong and differentiated brand, and a highly talented team of employees. Adding the Alternative brand and product line up further diversifies our sales mix as we emphasize growth across all channels, including online.”