Canada’s Gildan Activewear to acquire HanesBrands for $2.2 billion
HanesBrands is being acquired in a transaction that values the North Carolina-based company at $4.4 billion.
Canadian garment maker Gildan Activewear Inc. and HanesBrands Inc. have entered into a definitive merger agreement under which Gildan will acquire the U.S. firm for $2.2 billion.
Under the terms of the deal, HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands common stock. The offer implies a value of $6 per HanesBrands share, representing an approximately 24% premium to the company’s closing price on Monday. Including debt, the deal puts HanesBrands' enterprise value at $4.4 billion
“With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” said Glenn J. Chamandy, president and CEO of Gildan. “The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage 'Hanes' brand presence in activewear across channels, while enhancing Gildan’s retail reach for its portfolio of brands.”
The deal is expected to close in late 2025 or early 2026. Following the closing, Gildan's headquarters will continue to be located in Montréal, and the combined company will maintain a strong presence in Winston-Salem, N.C. In addition, Gildan intends to initiate a review of strategic alternatives for HanesBrands Australia, which could include a sale or other transaction.
In recent years, HanesBrands has been shedding part of its non-core businesses, including its brick-and-mortar portfolio. In 2024, the company sold its Champion business to Authentic Brands Group. That same year, Hilco Consumer-Retail acquired the operations for HanesBrands' Outlet and Maidenform stores.
The acquisition comes as HanesBrands has been on the hunt for a new chief executive. In February, the company said that Steve Bratspies would depart as CEO and board member at the end of 2025, or upon the appointment of his successor. He has led HanesBrands since 2020.
“We have great respect for Gildan’s manufacturing strength and long track record of success,” said Bratspies. “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.”
The merger comes as the apparel industry is being challenged by tariffs.
“As part of Gildan, HanesBrands will benefit from an even stronger financial and operational foundation that will provide new growth opportunities — helping to power further innovation, a broader product offering and greater reach across channels and geographies,” said HanesBrands chairman Bill Simon. “We are confident that this transaction and the next chapter with Gildan is the right next step for HanesBrands and will honor and build on its long history for the benefit of all our stakeholders.”
