After a deal to sell Champion for up to $1.5 billion, Hanesbrands’ stock goes up.

In premarket trading on Wednesday, shares of Hanesbrands Inc. HBI, -2.13% rose 6.9% towards a two-month high. This came after the company said it had agreed to sell its Champion athletic clothing business to Authentic Brands Group for a deal that could be worth up to $1.5 billion. The deal is set to close in the second half of 2024, and there is a chance to get $300 million in cash if certain performance goals are met. Hanesbrands thinks the deal will bring in a net of $900 million for the company. “We think this deal will help the company get rid of its debt faster while also setting HanesBrands up for steady growth and cash flow generation through a focused strategy on advancing its leading knickers brands and improving its world-class supply chain,” Chairman Bill Simon said. A strategic review of Champions, which was first announced in September 2023, is now over with this deal. As of Tuesday, Hanesbrands stock had gone up 13.2% year to date, while the S&P 500 SPX, +0.15% had gone up 10.9%.