Hanesbrands Inc. has signed an agreement to acquire Knights Holdco Inc.

Known as Knights Apparel, the company sells licensed collegiate logo apparel in the mass retail channel. Those products include T-shirts, sweatshirts and other sports apparel, representing 400 of the largest U.S. colleges and universities.

Knights is estimated to have sales of $180 million for the full-year 2015. The deal is an all-cash transaction and values Knights at approximately $200 million on an enterprise-value basis, or eight times expected full-year 2015 EBITDA. Hanes will fund the acquisition with cash on hand and short-term borrowings on its revolving credit facility.

Hanes said the transaction, subject to antitrust review and other customary closing conditions, is expected to close early in the second quarter of 2015.

Knights, founded in 2001, has 210 employees. It is primarily based in Spartanburg, S.C. Knights’ chief executive officer Joe Bozich will join Hanesbrands following the close of the acquisition.

load comments
blog comments powered by Disqus