08:33 AM EDT, 06/05/2024 (MT Newswires) -- (Updates with additional details from the third paragraph.)

HanesBrands ( HBI ) said Wednesday it has agreed to sell certain operating assets and intellectual property of its global Champion business to Authentic Brands Group, with the deal valued at $1.2 billion.

The deal value could reach up to $1.5 billion via additional cash considerations of up to $300 million subject to the achievement of performance thresholds, the company said.

The transaction, subject to customary closing conditions, is expected to close in H2. Afterward, HanesBrands ( HBI ) will provide certain transition services for Champion that include overseeing the operations in some regions during a transition period.

HanesBrands ( HBI ) said it expects net proceeds from the deal of about $900 million, which the company will use to pay down debt.

HanesBrands ( HBI ) Chief Executive Steve Bratspies said the deal "further simplifies our business, deleverages our balance sheet and enhances the company's operations and financial performance."

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