Canada’s Gildan Activewear will buy HanesBrands for $2.2 billion, keeping the company headquarters in Montreal, but promising the combined company will continue to have a strong presence in Winston-Salem, the companies announced this morning.
The companies put the transaction’s value at $4.4 billion when HanesBrands’ debt is included. The transaction is expected to close in late 2025 or early 2026.
Gildan, best known for its T-shirts and sweatshirts, also makes American Apparel and Peds, and will now have access to the iconic Hanes, Maidenform and Bali brands
“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,” said Gildan President and CEO Glenn J. Chamandy in a release. “With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart.”
Chamandy says Gildan will “expand the heritage ‘Hanes’ brand presence in activewear across channels, while enhancing Gildan’s retail reach for its portfolio of brands.”
HanesBrands CEO Steve Bratspies thanked the company’s workers, adding he’s “particularly pleased that Gildan intends to maintain HanesBrands’ strong presence in Winston-Salem.”
HanesBrands shareholders will receive 0.102 common shares of Gildan and 80 cents in cash for each share of HanesBrands common stock. HanesBrands shareholders will own about 19.9% of Gildan stock once the deal closes.
“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,” said Bratspies in a release.
HanesBrands shares were down about 6% in pre-market trading on Wednesday after spiking almost 28% on news of the proposed transaction.
Gildan has identified at least $200 million in expected annual run-rate cost synergies across supply chain, operations and SG&A that it expects to realize within three years.