Champion parent to buy Gear For Sports for $55 million
Hanesbrands (NYSE: HBI), parent of Champion, said it is acquiring GearCo Inc., more commonly known as Gear For Sports, for $55 million in cash and assuming $170 million in debt from the company.
It said the deal should close in the fourth quarter and boost earnings by about $0.20 per share in the first year. It is expected to increase earnings by $0.30 per share the year after that.
GearCo already sells apparel under Hanesbrands' Champion label, as well as licensed logo apparel in college bookstores.
It will also help build Champion activewear sales and increase sales of higher-margin graphic clothes. After the deal, 20 percent to 25 percent of Hanesbrands outerwear segment revenue will be graphic clothes, it said.
Hanesbrands affirmed yearly guidance of $2.25 to $2.35 per share.
--Compiled by Wendy Geister
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