WINSTON-SALEM, N.C.—Hanes announces the acquisition of Alternative Apparel. The announcement comes as the company releases its preliminary third-quarter 2017 results.
Hanes says it has purchased Georgia-based Alternative Apparel through an all-cash transaction, valued at roughly $60 million. Alternative projects full-year net sales of approximately $70 million.
“This is an exciting acquisition that supports our activewear growth strategy,” says Gerald W. Evans, CEO at Hanes. “We will be able to leverage our global low-cost supply chain, which is a recognized social, environmental, and ethical leader, with another strong brand to expand our market and channel penetration, including online.”
The acquisition combines two companies with different manufacturing structures. While Hanes self-produces the majority of its goods, Alternative Apparel outsources its production.
Rachel Newman, director of sales and marketing at Hanes Activewear comments that the company is excited to “expand our brand portfolio in the embellishment market.”
“Along with Hanes and Champion, Alternative gives us an incredible range of apparel that meets the needs of customers at every level across the industry,” states Newman. “Importantly, Alternative’s commitment to social responsibility fits firmly within the Hanes ethos."
With the transition, current Alternative Apparel CEO Evan Toporek remains with the company and leads the business from Norcross, Georgia.
“We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform,” states Toporek. “Partnering with a like-minded company that is a longtime industry innovator and leader will benefit our employees, our customers, and our brand as a whole.”
Hanes says it plans to update its full-year guidance, including complete third-quarter results in an investor’s conference call on Nov. 1.
To see the full preliminary report, visit http://bit.ly/2ghVsUm.