The amount of the deal can reach $1.5 billion due to an additional conditional cash award of up to $300 million, depending on the achievement of performance thresholds.

The acquisition of Champion, known for its athletic tops and hoodies, will help Authentic Brands tap into the fast-growing sportswear business as shoppers increasingly look to complement their wardrobes with casual and athletic apparel that tends to be more comfortable and stylish.

Authentic Brands owns a wide range of clothing brands, including Aeropostale, Eddie Bauer, Forever 21 and Ted Baker.

HanesBrands said it intends to increase investment in its portfolio of brands, including Hanes, Bonds, Maidenform and Bali.

Following the closing of the transaction, which is expected to be completed in the second half of 2024, HanesBrands will provide Champion with certain transition services, including the conduct of business in certain regions.

The innerwear manufacturer expects the net proceeds from the deal to be about $900 million.