HanesBrands to Combine Forces with Gildan Activewear, Valued at Approximately $4.4 Billion Enterprise
Gildan Activewear Acquires HanesBrands in Multi-Billion Dollar Deal
Gildan Activewear, a leading global basic apparel company, has announced its acquisition of HanesBrands for approximately $4.4 billion in enterprise value. The deal, Gildan's largest to date, will significantly boost its market presence as a global basic apparel leader.
The transaction, which is expected to close by late 2025 or early 2026, will primarily consist of 87% stock and 13% cash, with HanesBrands shareholders receiving 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands common stock.
To finance the acquisition, Gildan has obtained $2.3 billion of committed transaction financing, including bridge and term loans. The cash portion of the acquisition is anticipated to be approximately $290 million.
The combined entity is expected to double revenues, creating a scale that sets Gildan apart. This increased size will strengthen Gildan’s retail reach and enhance Hanes’ brand presence in activewear across channels.
Operational synergies are also expected, with Gildan anticipating at least $200 million in annual run-rate cost synergies within three years. These savings will be achieved by leveraging Gildan's low-cost, vertically integrated platform, enhancing efficiencies, and driving innovation.
The merger will allow for portfolio expansion beyond basic apparel and activewear, enhancing offerings across both companies' brands, including American Apparel, Goldtoe, Comfort Colors, and Hanes.
In terms of market and brand positioning, HanesBrands is a leader in men’s underwear and other categories in North America and Australia, while Gildan is strong in domestic printwear but has lacked consumer branding strength. The combination addresses these gaps synergistically.
Gildan Activewear, Inc. (GIL, GIL.TO) and HanesBrands, Inc. (HBI) have entered into a definitive merger agreement. The transaction is subject to HanesBrands shareholder approval, other customary closing conditions, regulatory approvals, and the approval of Gildan common shares for listing on the New York Stock Exchange and the Toronto Stock Exchange.
Following the transaction close, Gildan's headquarters will remain in Montreal, Quebec, and the combined company will maintain a strong presence in Winston-Salem, North Carolina, where HanesBrands currently has its headquarters.
Gildan is reaffirming its full year 2025 revenue and earnings per share guidance, and has provided a three-year outlook for the 2026-2028 period, with net sales growth at a compound annual growth rate in the 3 to 5 percent range and adjusted earnings per share CAGR in the low 20% range, starting from the midpoint of Gildan's 2025 adjusted earnings per share guidance.
In connection with the acquisition, Gildan intends to initiate a review of strategic alternatives for HanesBrands Australia, which could include a sale or other transaction. The transaction is also subject to Gildan refinancing HanesBrands' revolving credit facility, term loans, unsecured notes, and short-term debt totaling approximately $2 billion in aggregate.
The Board of Directors of HanesBrands recommends that the HanesBrands shareholders vote in favor of the proposed transaction. Based on the closing price of both companies' common stock on August 11, 2025, the offer implies a value of $6.00 per HanesBrands share.
Analysts view the merger as offering strategic benefits to both parties, with Morningstar's David Swartz highlighting that while HanesBrands struggled with debt and underinvestment, the merger with Gildan presents opportunities for both companies. Industry executives also emphasize the combination’s potential to improve supply chain reliability, product innovation, and sustainability focus, enabling new market opportunities.
[1] Gildan Activewear Press Release, August 11, 2025. [2] HanesBrands Press Release, August 11, 2025. [3] Reuters, August 11, 2025. [4] The Wall Street Journal, August 11, 2025. [5] Bloomberg, August 11, 2025.
The acquisition of HanesBrands by Gildan Activewear marks a significant step in the finance and business realm for both companies, promising double revenues and enhanced brand presence in the industry. The transaction will be financed through a combination of stock and cash, with operational synergies expected to yield at least $200 million in annual cost savings.
