Wolverine Worldwide Sells Champion Trademarks To HanesBrands For $90M Cash

Wolverine World Wide Inc WWW subsidiary, Keds LLC, has sold Champion trademarks for footwear in the U.S. and Canada to its longtime licensee, HanesBrands Inc HBI, for $90 million in cash.
Under the agreement, Wolverine Worldwide will retain a perpetual license to continue using the Champion trademark on certain footwear, including the Keds Champion sneaker.
The transaction also successfully resolves outstanding litigation between the parties.
"This transaction represents a unique opportunity to simplify our business model while at the same time securing a significant amount of cash at a meaningful multiple of future expected royalty streams," said CEO Brendan Hoffman.
Wolverine held $149.6 million in cash and equivalents as of April 2, 2022. HanesBrands held $369.2 million in cash and equivalents.
Price Action: WWW shares closed lower by 1.13% at $20.16 on Thursday.