HanesBrands has entered into a definitive purchase agreement to acquire privately held Champion Europe, which owns the trademark for the Champion brand in Europe, the Middle East and Africa, in an all-cash transaction. The acquisition is expected to close by mid-year. HanesBrands participates in the promotional products industry as supplier Hanes/Champion (UPIC: HBIINC) based in Winston Salem, North Carolina.

The purchase price of Italy-based Champion Europe will be 10 times actual calendar 2016 earnings before interest, taxes, depreciation and amortization, subject to adjustment for cash, debt and working capital. Champion Europe expects 2016 net sales of more than €190 million, operating profit of approximately €15 million, and EBITDA of approximately €20 million.

“This is a great time to do an acquisition,” says Richard Noll, Hanes chairman and CEO. “Our overall business is trending as expected; our recent acquisitions are performing well; we have a vision for Champion as a global brand; and we feel good about delivering double-digit earnings growth in 2016 and for many years to come.”

Champion Europe, which designs, sources and sells Champion athletic apparel wholesale to retailers and directly to consumers via company-owned retail stores, will be run as a division of the company’s global Champion organization. Sauro Mambrini, CEO and president of Champion Europe, will remain with HanesBrands to oversee Champion Europe operations. The company’s largest wholesale markets are Italy, Greece, Spain and Scandinavia, while the company operates approximately 130 retail stores in Italy and Greece.

“This acquisition, coupled with the recent purchase of the Champion business from our licensee in Japan, will unite the Champion brand globally and will give us a powerful platform for growth on every continent,” says Gerald W. Evans Jr., Hanes chief operating officer. “Sauro Mambrini and the highly capable management team of Champion Europe will be a great addition to our organization.”