Basic apparel manufacturer HanesBrands has agreed to acquire licensed collegiate logo apparel seller Knights Apparel from affiliates of Merit Capital Partners for around $200m.
Knights Apparel sells T-shirts, sweatshirts and other sports apparel with college logos and graphics primarily to mass merchant retailers. It sells apparel representing 400 of the largest US colleges and universities.
Founded in 2001, Knights employs close to 210 people and buys all of its apparel from outsourced contractors and sends those garments to outsourced embellishment facilities.
Knights is anticipated to generate close to $180m in sales for the full-year 2015.
Hanes already sells licensed collegiate apparel in university bookstores through its Gear for Sports division, by using its apparel production, and graphic attribution and embellishment facilities.
With this acquisition, Hanes expects to strengthen its position in the licensed and graphic apparel business with over $450m in combined annual sales.
The acquisition will integrate Knights business into Hanes’ supply chain, a move that will lead to significant savings and efficiencies.
Hanesbrands chairman and CEO Richard Noll said: "This is an exciting acquisition opportunity to leverage our existing Gear for Sports licensed collegiate apparel business, our expertise and size in the mass retail channel, and our low-cost global supply chain."
The acquisition, which is subject to antitrust review and other customary closing conditions, is expected to be completed in the second-quarter 2015.