Shares of Hanesbrands (NYSE:HBI) soared to the highest levels in over a year on Wednesday after the company announced the sale of its Champion business.
HBI is selling its athletic apparel unit to Authentic Brands Group in a deal that could be worth up to $1.5 billion, including a potential $300 million in cash contingent on performance targets.
The company expects net proceeds of $900 million from the transaction, which will be used to reduce debt.
“The successful completion of this transaction further simplifies our business, deleverages our balance sheet and enhances the company’s operations and financial performance,” said Hanesbrands CEO Steve Bratspies in a statement.
The stock jumped more than 15% in premarket trading, nearing its highest closing price since February 2023.