Gildan Activewear has entered into a definitive agreement to pay $2.2 billion for HanesBrands in a deal that places its enterprise value at $4.4 billion. The acquisition will give HanesBrands shareholders approximately 19.9% of Gildan shares on a non-diluted basis while creating a global leader in basic apparel.
The deal, which has been approved by both companies’ boards, is subject to HanesBrands shareholder approval and other customary closing conditions and is projected to close in late 2025 or early 2026. Gildan is bullish on the acquisition’s impact and has provided a three-year outlook for 2026 to 2028 that includes net sales growth at a CAGR of 3% to 5%.
“With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” said Glenn Chamandy, President and CEO of Gildan in a statement. “The combination of 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. Further, our state-of-the-art low-cost vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation.”
In addition to the opportunity for increased sales, Gildan has identified at least $200 million in expected annual run-rate cost synergies across supply chain, operations and SG&A that it expects within the next three years. Following the close of the transaction, Gildan will retain its Montreal headquarters, and the combined company will maintain a strong presence in Hanes’ home town of Winston-Salem, N.C.
Advertisement
“This transaction represents a powerful alignment of HanesBrands’ and Gildan’s shared commitment to quality, innovation and excellence,” said Steve Bratspies, CEO of HanesBrands in a statement. “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.”
In June 2024 Hanes sold the IP and certain operating assets of the Champion brand to Authentic Brands Group for $1.2 billion, and in March 2025 Urban Outfitters collaborated with Hanes for an exclusive collection of innerwear and apparel for men and women.
