Gildan Activewear Inc., based in Canada, has entered into an agreement to acquire HanesBrands Inc. in a transaction valued at approximately $2.2 billion in equity and an overall enterprise value of $4.4 billion. As part of the deal, shareholders of HanesBrands will receive 0.102 shares of Gildan stock along with $0.80 in cash per share, which reflects a 24% premium based on HanesBrands’ closing price on August 11. Upon completion of this transaction, HanesBrands shareholders are expected to hold about 19.9% of Gildan on a non-diluted basis.
This acquisition is set to significantly enhance Gildan’s revenues, broaden its portfolio to include well-known innerwear brands, and reinforce its cost-efficient, vertically integrated manufacturing operations. Both companies anticipate realizing at least $200 million in annual run-rate cost synergies within three years—$50 million in 2026, $100 million in 2027, and another $50 million in 2028. The deal is projected to be immediately accretive to adjusted diluted EPS and to generate more than 20% EPS accretion once synergies are fully realized, as noted in a joint press release.
Gildan plans to retain its headquarters in Montreal while also preserving a significant presence in Winston-Salem. The transaction, which has been unanimously approved by both boards, is contingent upon shareholder and regulatory approvals, with expected closing set for late 2025 or early 2026. The financing structure includes $2.3 billion in committed facilities, and Gildan aims to achieve a net debt-to-adjusted EBITDA ratio of less than or equal to 2.0x within 18 months following the deal’s completion.
The newly formed entity targets an annual net sales growth of 3–5%, capital expenditure at 3–4% of sales, and adjusted EPS growth in the low 20% range through 2028. Additionally, Gildan will explore strategic alternatives for HanesBrands Australia, which may include a potential sale, according to the announcement.
Glenn J. Chamandy, President and CEO of Gildan, celebrated the acquisition of HanesBrands as a pivotal moment, emphasizing that the merger will double their revenues and enhance their market position. He expressed enthusiasm for expanding the Hanes brand in activewear and improving Gildan’s retail reach through their innovative, low-cost manufacturing platform.
Steve Bratspies, CEO of HanesBrands, highlighted the merger as a strong alignment in commitment to quality and innovation, looking forward to enhancing HanesBrands’ portfolio and growth opportunities.
Michael Kneeland, Gildan’s Board Chair, noted the merger as a strategic move that combines the strengths of both companies to deliver exceptional value.
Bill Simon, Chair of HanesBrands’ Board, stressed the agreement will provide significant value to shareholders and strengthen HanesBrands’ position, ensuring continued innovation and broader market reach. He believes this partnership is essential for HanesBrands’ future success.
