Winston-Salem-based HanesBrands announced the sale of Champion, its athletic apparel business on Wednesday.
The sale to Authentic Brands Group could be worth up to $1.5 billion.
The agreement was approved unanimously by the HanesBrands Board of Directors following an evaluation of the Champion business that began last September.
In a press release, officials said the sale will allow HanesBrands to focus on its innerwear businesses, like Hanes and Maidenform. CEO Steve Bratspies also stated that the transaction will simplify the business, and help the company’s bottom line.
"Today’s announcement is the culmination of significant effort by our teams to position all of our brands on the optimal path for the future," Bratspies said.
HanesBrands expects to gain approximately $900 million from the deal, which according to the release, will be used to reduce debt.
The sale is set to be completed in the second half of 2024.
Amy Diaz covers education for WFDD in partnership with Report For America. You can follow her on Twitter at @amydiaze.