HanesBrands, Winston-Salem, N.C., has announced that it has purchased Spartanburg, S.C.-based Knights Apparel, a seller of collegiate logo apparel.
Knights Apparel sells T-shirts, sweatshirts and other apparel representing 400 of the largest U.S. colleges and universities, and now will be coupled with Hanes’ Gear for Sports division, which currently supplies licensed collegiate apparel.
“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,” says Hanesbrands Chairman and CEO Richard A. Noll. “Combining the two companies is a great way to create value.”
Knights Apparel, which will be sold to Hanes by affiliates of Merit Capital Partners, is valued on an enterprise-value basis at $200 million, and is expected to have $180 million in sales in 2015. Hanes expects to reach $450 million in combined annual sales.
“HanesBrands is the perfect partner and owner for Knights Apparel,” says Knights Apparel CEO Joe Bozich. “The company understands our business and will make us more valuable to our licensor and retail partners, allowing us to provide best-in-class products, brand management and service.”
For more information, visit hanes.com/corporate. — J.B.