Hanes, the American brand that has become synonymous with fashion for many in the men’s fashion world, has announced it will sell off its apparel division to Kering, a Chinese company that specializes in manufacturing and distributing the goods.
Kering was founded in 2011 and is based in Hangzhou, capital of the city of Zhejiang province, and has been involved in China’s fashion industry since 2008.
Hanes was acquired by Kering in 2016, after it purchased the clothing brand Lululemon for an undisclosed sum.
Kering had been looking for a buyer to take its apparel business and it had been trying to acquire Hanes since 2014.
Hanes’ men’s collection had been a focus of some of the negotiations, according to people familiar with the matter, and Hanes said at the time it was willing to sell a portion of its clothing and footwear business.
It was unclear whether the deal was finalized.
Kers spokesman Daniel Hock said in a statement that Hanes will continue to focus on its core business and that the company is committed to “the long-term success of our company and the community it serves.”
Kering is a Chinese multinational company with an estimated $4.6 billion in annual revenue.
It is best known for the brands Hanes and Under Armour, which have been owned by the family of Wang Jianlin, China’s president and CEO.KERS has had a troubled relationship with the Chinese government.
In 2017, a former executive from Kering’s parent company was arrested and charged with money laundering in China after a report indicated he funneled nearly $1 billion into a Chinese investment fund in 2014.
The company has been criticized by some within the United States for the company’s ties to Chinese state-owned companies.
In 2018, the U.S. Department of Justice warned KERS it could be at risk of being targeted by the Chinese authorities for failing to curb its ties to foreign state-backed firms.
The deal will create a $2 billion company-owned enterprise, and Kering will continue as a leading brand in the U,Kers said in the statement.
Kerming said it will continue its efforts to create the world’s best-performing global brand, with a global focus on design and design services.
“This transaction will create two global leaders in the apparel industry who will help ensure our brand continues to be recognized and celebrated by a global community,” the statement said.
“The combined company will be comprised of a global team that will be focused on bringing our innovative design, service, and manufacturing solutions to the market.
We look forward to continuing our partnership with Kering as they continue to lead the industry.”
Kers is part of the Kering Group, which owns the Hanes brand.
Kers, based in Houston, is a major U.K. and U.A.E. company that sells clothing, shoes and accessories to more than 80 countries.
It also makes home furnishings, electronics, household goods and other consumer products.