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Winston-Salem - HanesBrands has acquired US-based casual and activewear brand Alternative Apparel in a US$60 million deal.

Founded in 1995, sells Alternative brand basic T-shirts, fleece and other tops and bottoms. The company’s sales and growth are split between the embellishment channel and the retail, online and direct-to-consumer channels, operating three stores in Venice, California; SoHo, New York; and San Francisco.

Alternative Apparel, based in Norcross, Georgia, is expected to have full-year 2017 net sales of approximately $70 million while the post-synergy purchase price multiple is expected to be approximately 3.5 times projected EBITDA.

“This is an exciting acquisition that supports our activewear growth strategy,” Evans said. “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. Combining these two companies is a great way to create value and generate growth opportunities.”

Alternative Apparel outsources production of all of its products, while Hanes self- manufactures the majority of its activewear basics.

“Alternative Apparel has an attractive business model, a very strong and differentiated brand, and a highly talented team of employees,” Evans added. “Adding the Alternative brand and product lineup further diversifies our sales mix as we emphasize growth across all channels, including online.”

Alternative Apparel CEO Evan Toporek will remain with Hanes to continue leading the business out of Norcross.

“We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform,” Toporek said. “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.”

HanesBrands is a leading seller of activewear apparel basics and graphic apparel, including T-shirts and fleece, under its Hanes and Champion brands. The company sells to traditional retailers, specialty retailers, schools/clubs, and directly to consumers, as well as to embellishment distributors.

In the past six years, it has expanded its Champion and Hanes activewear graphic and sports apparel business through the acquisitions of Gear for Sports, the leading seller of licensed logo apparel in the collegiate bookstore channel; Knights Apparel, a leading seller of licensed logo apparel in the mass retail channel; and GTM Sportswear, a leading seller of custom decorated high school teamwear and fanwear. The company has also launched Hanes Ink custom Champion and Hanes college and high school logo apparel available online.

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