Gildan Activewear Set to Become Apparel Behemoth with $2.2B Hanesbrands Acquisition
Canadian apparel manufacturer, Gildan Activewear, has struck a deal to acquire underwear maker, Hanesbrands. The $2.2 billion cash and stock deal, which includes debt, was announced on Wednesday, valuing Hanesbrands at an enterprise value of approximately $4.4 billion.
The acquisition is set to double Gildan’s annual revenues, creating a global basic apparel leader. The deal combines Gildan’s manufacturing expertise with iconic brands such as Hanes, Maidenform, and Bali. As per the agreement, Hanesbrands shareholders will receive 0.102 Gildan shares plus 80 cents in cash for each share. This represents a 24% premium to Monday’s closing price.
“With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” said Glenn Chamandy, Gildan’s CEO. The companies expect to realize at least $200 million in annual cost synergies within three years. The deal is expected to close in late 2025 or early 2026.