HanesBrands, the US-based global basic apparel retailer and manufacturer has entered into a definitive purchase agreement to acquire Knights Apparel, the US-based seller of licensed collegiate logo apparel in the mass retail channel. Hanes is purchasing Knights, which is forecast to have sales of approximately US $ 180 million for the full-year 2015, from affiliates of Merit Capital Partners. The all-cash transaction values Knights at approximately US $ 200 million on an enterprise-value basis. With the addition of Knights, Hanes expects to be an even stronger growth partner for licensed and graphic apparel with more than US $ 450 million in combined annualized sales. The combination will create a best-in-class supplier of licensed collegiate apparel that has both low-cost and quick-turn supply capability and is primarily supported by company-owned garment production and graphic embellishment facilities.
