Winston-Salem, N.C.-based apparel manufacturer Hanesbrands Inc. has agreed to acquire Lenexa, Kan.-based GearCo. Inc., also known as Gear For Sports -- a seller of embellished licensed logo apparel to college bookstores under several brand names including Hanesbrands' Champion label -- for $55 million. The purchase is expected to be completed in the fourth quarter of 2010.

"This acquisition will create great value and immediately add to our growth momentum," said Richard A. Noll, chairman and CEO, Hanesbrands. "We have significant growth synergies in both the collegiate bookstore channel and our existing retail channels and can take advantage of our low-cost global supply chain. This acquisition is an excellent way to leverage the growth platform we have just built and create value for our shareholders."

The acquisition is part of Hanesbrands' strategy to create stronger branded businesses in its Outerwear Segment. Following its purchase of Gear For Sports, 20 to 25 percent of the company's Outerwear Segment sales will be graphic apparel.

"Gear For Sports is a graphic apparel powerhouse with a phenomenal team," said William J. Nitakis, president and COO, Hanesbrands. "Together we have tremendous opportunities to expand, drive growth and take market share."

Gear For Sports' senior management will continue to run the company, and the administrative, operational, production and sales structure will remain the same, with the business continuing to operate out of its Lenexa office.

August 17, 2010