Apparel Search believes that the following statement alone is a valid reason for the purchase, "Alternative Apparel outsources production of all of its products, while Hanes selfmanufactures the majority of its activewear basics."
On October 18, 2017 HanesBrands announced the acquisition of Alternative Apparel, a marketer of better apparel basics under the Alternative brand to the distributor, online, direct-to-consumer and traditional retail channels.
Hanes has purchased privately held Alternative Apparel in an all-cash transaction valued at approximately $60 million on an enterprise basis. Alternative Apparel, based in Norcross, Georgia, is expected to have full-year 2017 net sales of approximately $70 million.
The post-synergy purchase price multiple is expected to be approximately 3.5 times projected EBITDA. Hanes funded the acquisition with cash on hand and short-term borrowings on its revolving credit facility. The acquisition closed Friday, Oct. 13, 2017.
Alternative Apparel, founded in 1995, sells Alternative brand better basic T-shirts, fleece and other tops and bottoms. Alternative is a lifestyle brand known for its comfort, style and social
responsibility.
The company’s sales and growth are split between the embellishment channel and the retail, online and direct-to-consumer channels. The company operates three Alternative stores – in Venice, California; SoHo, New York; and San Francisco. The company’s ecommerce site is www.AlternativeApparel.com.