HanesBrands, parent company of Hanes Branded Printwear and Champion Branded Printwear (asi/59528), has reached an agreement to acquire Champion Europe, which owns the trademark for the Champion brand in Europe, Africa and the Middle East. The move brings all of Champion’s global presence directly under the control of HanesBrands.

In this all-cash transaction, Hanes will pay 10 times the worth of Champion Europe’s EBITDA this year, putting the purchase price at roughly 200 million euros ($228 million). The company said that Champion Europe expects 2016 net sales of more than 190 million euros ($216 million) with operating profit of approximately 15 million euros ($17 million). The acquisition is expected to close mid-year.

Hanes believes that under the company’s direction, Champion Europe can increase its revenue to well over 250 million Euros ($285 million) in the next three years, and increase its operating profit by 10 million Euros. In an FAQ available to investors, Hanes said, “Like all of our acquisitions, we are able to justify Champion Europe based solely on the expected cost synergies, which in this case will come almost entirely from supply chain synergies.”

Based in Italy, Champion Europe designs, sources and sells Champion athletic apparel and accessories. The company derives most of its revenue from Italy and Greece, where it operates approximately 130 retail stores and also sells wholesale to retailers. Hanes will operate Champion Europe under the company’s global Champion structure, and will maintain separate Innerwear and Activewear segments as it does in the U.S. Sauro Mambrini, CEO and president of Champion Europe, will remain with Hanes to oversee Champion Europe’s operations.

“This acquisition, coupled with the recent purchase of the Champion business from our licensee in Japan, will unite the Champion brand globally and will give us a powerful platform for growth on every continent,” said Hanes COO Gerald W. Evans Jr. “Sauro Mambrini and the highly capable management team of Champion Europe will be a great addition to our organization.”

With the acquisition, Champion products are available on five continents and generate approximately $1.2 billion in revenue. Hanes said it believes its global Champion revenue can increase by high single‐digits to low double‐digit rates and approach $2 billion within the next five to six years.

In the U.S. promotional product industry, HanesBrands sells both Hanes and Champion apparel.