Gildan to acquire HanesBrands in $2.2 billion deal

Gildan Activewear Inc. (NYSE: GIL) announced it will acquire HanesBrands Inc. (NYSE: HBI) in a transaction valued at approximately $2.2 billion in equity value and $4.4 billion in enterprise value, based on Gildan's closing stock price on August 11, 2025.

Under the merger agreement unanimously approved by both boards, HanesBrands shareholders will receive 0.102 Gildan shares and $0.80 cash for each HanesBrands share. The offer represents $6.00 per HanesBrands share, a 24% premium to HanesBrands' closing price on August 11, 2025. Upon closing, HanesBrands shareholders will own approximately 19.9% of Gildan shares.

The transaction consideration is approximately 87% stock and 13% cash. Gildan expects to refinance HanesBrands' existing debt of approximately $2 billion and has obtained $2.3 billion in committed transaction financing, including a $1.2 billion bridge facility and $1.1 billion in term loans.

"With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart," said Glenn J. Chamandy, Gildan's President and CEO. The combined company would have had approximately $6.9 billion in net sales for the trailing twelve months ended June 29, 2025.

Gildan projects at least $200 million in annual run-rate cost synergies within three years of closing, with approximately $50 million expected in 2026, $100 million in 2027, and $50 million in 2028. The transaction is expected to be immediately accretive to Gildan's adjusted diluted earnings per share and 20% accretive when including expected synergies.

Gildan's headquarters will remain in Montreal, while the combined company will maintain a presence in Winston-Salem, North Carolina. The transaction requires HanesBrands shareholder approval and regulatory approvals, with closing expected in late 2025 or early 2026.

Following the transaction, Gildan expects its net debt leverage ratio to be approximately 2.6 times adjusted EBITDA at closing, with plans to reduce this to 2.0 times or less within 12 to 18 months. The company intends to pause share repurchases until reaching the midpoint of its target leverage framework of 1.5 to 2.5 times.

You May Also Be Interested In

• Two Harbors receives final approval for CrossCountry Mortgage merger
• Citadel unwinds 80% of Aschenbrenner’s portfolio risk - report
• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics