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Gildan Activewear to Acquire Hanesbrands in $2.2 Billion Deal

By  |  August 13, 2025

Gildan Activewear Inc. has announced plans to acquire U.S.-based underwear maker Hanesbrands Inc. in a transaction valued at approximately $2.2 billion in cash and stock, according to a statement issued Wednesday. The deal, the largest in Gildan’s history, aims to double the Montreal company’s annual revenue and strengthen its position in the global apparel market.

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    The proposed offer equates to about $6 per Hanesbrands share, representing a roughly 24% premium to the closing price on August 11. Including debt, the acquisition places Hanesbrands’ total value at around $4.4 billion, per the statement. Hanesbrands’ shareholders are expected to hold about 19.9% of Gildan’s shares on a non-diluted basis once the deal closes.

    “With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” said Gildan Chief Executive Officer Glenn Chamandy in the company’s release. Gildan currently supplies low-cost basics, such as T-shirts and socks, to major retailers including Walmart and Nike, while also selling under brands like American Apparel. Following the announcement, Hanesbrands shares rose about 6% in early New York trading on Wednesday, building on a 28% surge the previous day amid reports of the potential deal. Gildan shares were also up by 12%.

    The companies expect to achieve at least $200 million in cost synergies within three years, with the acquisition projected to be at least 20% accretive to Gildan’s earnings per share, according to the statement. The transaction is anticipated to close before the end of the first quarter of 2026. Once finalized, Gildan plans to evaluate the possible sale of Hanesbrands’ Australian operations.

    Chamandy told analysts that the two companies share nearly identical production methods and equipment, making the acquisition “really complimentary from all aspects.” However, not all industry analysts view the deal’s strategic benefits as clear-cut. Stifel analyst Martin Landry noted that while the sales overlap is evident, the innerwear market is “mature and growing slowly,” and many of Hanesbrands’ products appear outdated.

    From a trade perspective, Chamandy emphasized that both companies’ production facilities in Central America and Asia help mitigate tariff impacts. He also highlighted their significant role in the U.S. cotton market, stating they are “the largest consumer of US cotton probably, period.”

    The acquisition follows a turbulent chapter for Gildan’s leadership. In 2023, discussions over purchasing Hanesbrands contributed to tensions between Chamandy and the board, leading to his temporary removal over debt concerns. He later regained his position after winning a high-profile proxy battle with shareholder support in May 2024.

    Source: Bloomberg