Gildan Activewear Inc. (TSX: GIL, NYSE: GIL) and HanesBrands Inc. (NYSE: HBI) have announced a definitive merger agreement under which Gildan will acquire HanesBrands in a landmark $2.2 billion equity transaction, valuing the enterprise at approximately $4.4 billion. The combination will form a global powerhouse in the basic apparel sector, uniting iconic innerwear brands with one of the industry’s most efficient, vertically integrated manufacturing platforms.
The acquisition significantly expands Gildan’s scale, doubling its revenues and broadening its retail presence while enhancing the reach of the heritage “Hanes” brand in activewear channels. The companies expect the merger to deliver at least $200 million in annual run-rate cost synergies within three years—approximately $50 million in 2026, $100 million in 2027, and an additional $50 million in 2028. The deal is projected to be immediately accretive to Gildan’s adjusted diluted EPS, with over 20% accretion expected once synergies are fully realized. Over the next three years, adjusted diluted EPS is anticipated to grow at a CAGR in the low 20% range. Upon closing, HanesBrands shareholders will own approximately 19.9% of Gildan shares on a non-diluted basis.
“Today is a historic moment in Gildan’s journey,” said Glenn J. Chamandy, President and CEO of Gildan. “By joining forces with HanesBrands, we gain unparalleled scale and the opportunity to expand the Hanes brand presence while leveraging our low-cost vertically integrated platform to drive efficiency and innovation. This marks the next chapter of growth for Gildan as we continue delivering value to customers and shareholders.”
Steve Bratspies, CEO of HanesBrands, emphasized the cultural and strategic fit: “This is a powerful alignment of two companies committed to quality, innovation, and excellence. We look forward to building on HanesBrands’ leading innerwear portfolio while benefiting from Gildan’s manufacturing strength. I’m especially pleased Gildan will maintain HanesBrands’ strong presence in Winston-Salem.”
Michael Kneeland, Chair of Gildan’s Board, added: “This is a pivotal moment for Gildan. Hanes is a distinguished brand with a proud legacy, and together, we can create an exceptional organization with unmatched capabilities. With the finest talent from both sides, we are well positioned to shape the future of the basic apparel industry.”
The transaction is subject to customary closing conditions and regulatory approvals.
