HanesBrands, a leading marketer of everyday basic apparel under world-class brands, has completed the acquisition of Knights Apparel, a leading seller of licensed collegiate logo apparel in the mass retail channel.

With the acquisition, HanesBrands aims to become 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,” commented Richard A. Noll, Hanesbrands Chairman and Chief Executive Officer. “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.”

Acquisition

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 US 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 6 April 2015, worth approximately US 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.

Growth potential

With the addition of Knights, Hanes expects annualized sales of licensed and graphic apparel of more than US 450 million with significant growth potential for college licensed brands.

Hanes is the leading 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.

www.hanes.com