Hanesbrands (NYSE:HBI) stock is getting a boost on Wednesday after the innerwear apparel company announced it will sell the Champion brand.
Hanesbrands has agreed to sell the Champion brand to Authentic Brands Group for $1.2 billion. The deal could increase to $1.5 billion if a contingent cash consideration of up to $300 million is fulfilled. This requires the brand to reach performance goals after the sale.
Hanesbrands notes that it will receive net proceeds of $900 million from this deal. The company says that it intends to use all of the funds gained from this sale to pay down its debts.
What This Means for HBI Stock
Hanesbrands says that the sale of Champion will take place in the second half of 2024. The company also intends to list it as discontinued operations in its filings starting in the second quarter of the year. It will also update its guidance to adjust for the sale when it releases its Q2 results.
Steve Bratspies, CEO of Hanesbrands, said this about the sale:
“Over the past three years, we have taken necessary actions to enhance the Company’s operations and financial performance – returning to historical gross margins, reducing our cost structure, lowering our debt levels, and generating consistent cash flow. The successful completion of this transaction further simplifies our business, deleverages our balance sheet and enhances the Company’s operations and financial performance.”
HBI stock is up 5.1% as of Wednesday morning.
There are plenty of other stock market stories ready to go below!
We have all of the hottest stock market news traders need to know about on Wednesday! Among this is what’s going on with Deere (NYSE:DE) layoffs, why Moving iMage Technologies (NYSEMKT:MITQ) stock is up today and more. All of this info is available at the following links!
More Wednesday Stock Market News
- Deere Layoffs 2024: What to Know About the Latest Job Cuts
- Why Is Moving iMage Technologies (MITQ) Stock Up 60% Today?
- ACHR Stock Alert: FAA Grants Archer Aviation Key Airline Status
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
