Hanes Acquires Alternative Apparel
HanesBrands—the Winston-Salem, N.C.–headquartered owner of basics brand Hanes, athletic band Champion and lingerie brand Maidenform—acquired better basics brand Alternative Apparel, headquartered in Norcross, Ga., it was formally announced on Oct. 18.
Hanes acquired Alternative in an all-cash transaction for $60 million, according to a statement from Gerald W. Evans Jr., Hanes’ chief executive officer.
“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.”
Evan Toporek, the chief executive officer for Alternative, will continue to run the 22-year-old label from its offices in Norcross, outside of Atlanta.
“We’re thrilled to share Alternative products and experiences on a grander scale by leveraging Hanes’ global supply chain and growth platform,” Toporek said in a company statement.
The 116-year-old Hanes says it is the world’s largest marketer of basic apparel such as bras, underwear, hosiery, T-shirts and fleece. The company employs 65,300 people in more than 40 countries and is traded on the New York Stock Exchange. Also on Oct. 18, Hanes announced net sales of $1.8 billion for its 2017 third quarter.
Alternative is forecast to have 2017 net sales of $70 million. Alternative runs three physical boutiques. One is located in New York, and the others are based in Los Angeles’ Abbot Kinney neighborhood and in San Francisco. Alternative formerly ran a design office in downtown Los Angeles’ Fashion District. A company statement noted that Alternative strives for a vintage look with its basics, and 80 percent of its garments are made with sustainable fabrics and in an eco-friendly manner.