HBI has signed a definitive agreement to acquire Knights Apparel, a Spartanburg, SC-based seller of licensed collegiate logo apparel in the mass retail channel, for $200 million. The all-cash transaction values Knights, which sells apparel representing 400 of the largest U.S. colleges and universities, at approximately $200 million on an enterprise-value basis, or approximately 8x expected FY15 EBITDA.

The acquisition, expected to close in early Q2, should dovetail well with Hanes’ Gear For Sports unit that sells licensed college apparel into the college bookstore channel, using the company’s brands, owned apparel production and owned graphic attribution and embellishment facilities. Presuming a ... Log in to view full article.