On August 13, Canadian apparel giant Gildan Activewear Inc. announced that it has agreed to acquire U.S. innerwear and underwear major HanesBrands Inc. for $2.2 billion in cash and stock. Including debt, the total transaction value is approximately $4.4 billion, with completion expected between late 2025 and early 2026.
In addition to its flagship Gildan brand, the company owns American Apparel and Peds. With this acquisition, it will add globally recognized brands such as Hanes, Maidenform, and Bali to its portfolio.
Over $200 Million in Annual Cost Synergies Expected
Gildan forecasts that it will generate over $200 million in annual cost synergies within three years of closing. The breakdown is projected to be about $50 million in 2026, $100 million in 2027, and another $50 million in 2028, mainly through efficiencies in the supply chain, operations, and SG&A. The acquisition is expected to be accretive to adjusted diluted EPS immediately upon closing, with a forecast compound annual growth rate in the low 20% range over the next three years.
Gildan President and CEO Glenn J. Chamandy commented in a statement, “Today is a historic moment in Gildan’s journey as we look to join forces with HanesBrands. We are extremely pleased to welcome the HanesBrands’ team to the Gildan family. With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart.”
Chamandy also noted that the integration with HanesBrands will “expand the heritage “Hanes” brand presence in activewear across channels, while enhancing Gildan’s retail reach for its portfolio of brands.” He added that the company will leverage its advanced, low-cost vertically integrated platform to drive efficiency and further innovation, expressing strong anticipation for the next stage of growth while reaffirming its commitment to supporting customers and delivering long-term shareholder value.
HanesBrands’ Current Situation and Restructuring
Headquartered in Winston-Salem, North Carolina, HanesBrands has seen sales decline for three consecutive years and has not posted a full-year profit since 2021. Last year, the company sold its Champion sportswear brand to Authentic Brands Group for over $1.2 billion. In February, it announced a multi-year agreement with Target, with Champion products rolling out in stores and online starting this month.
HanesBrands CEO Steve Bratspies said, “This transaction represents a powerful alignment of HanesBrands’ and Gildan’s shared commitment to quality, innovation, and excellence. We have great respect for Gildan’s manufacturing strength and long track record of success. We look forward to expanding upon HanesBrands’ portfolio of leading innerwear brands and go-to-market expertise and opening new doors for growth and impact as part of Gildan.”
Michael Kneeland, Chair of Gildan’s Board of Directors, added, “This transaction represents a pivotal moment in Gildan’s story. Hanes is a distinguished brand with a proud legacy, and by joining forces with HanesBrands, we are forging an exceptional organization built on the strengths of both companies. Leveraging best practices and the exceptional teams from each side, we are poised to deliver outstanding value to our customers and shareholders.”
Under the agreement, HanesBrands shareholders will receive 0.102 Gildan common shares and $0.80 in cash for each HanesBrands share they own. Upon completion of the transaction, HanesBrands shareholders will hold approximately 19.9% of Gildan’s outstanding shares.
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