HanesBrands Acquires Alternative Apparel In $60 Million Deal
First announced Wednesday in a PPB Newslink Breaking News alert, HanesBrands (PPAI 191138) has acquired Norcross, Georgia-based supplier Alternative Apparel (PPAI 217134). The purchase of privately held Alternative Apparel was an all-cash transaction valued at approximately $60 million.
“This is an exciting acquisition that supports our activewear growth strategy,” says Gerald W. Evans Jr., CEO of Winston-Salem, North Carolina-headquartered 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. Combining these two companies is a great way to create value and generate growth opportunities.”
Alternative Apparel, founded in 1995, sells Alternative brand t-shirts, fleece and other tops and bottoms in the distributor, online, direct-to-consumer and traditional retail channels. It also operates three Alternative stores—in Venice, California; SoHo, New York; and San Francisco.
Rachel Newman, director of sales and marketing, Hanes Activewear, says, “We are excited to expand our brand portfolio in the embellishment market. Alternative Apparel created a new high-end threshold in this channel. 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. Importantly, Alternative’s commitment to social responsibility fits firmly within the Hanes ethos. This is a great opportunity to expand our commitment and footprint in the branded printwear industry.”
Evans adds, “Alternative Apparel has an attractive business model, a very strong and differentiated brand, and a highly talented team of employees. 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. He says, “We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform,” says 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.”