Gildan Activewear Inc. (GIL) entered a merger agreement on August 13, 2025, to acquire Hanesbrands Inc. (HBI) in a cash and stock deal valued at $4.4 billion.
HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.8 in cash for each share of HanesBrands common stock. The offer implies a value of $6 per HanesBrands share, representing a discount of 2.91% from the stock’s last close.
The implied transaction consideration is roughly 87% stock and 13% cash for every HanesBrands share. The cash portion of the acquisition is anticipated to be approximately $290 million.
Upon closing, HanesBrands shareholders will own approximately 19.9% of Gildan’s outstanding shares.
HanesBrands is an apparel company that designs, manufactures, and sells everyday basics and intimate apparel under iconic brands like Hanes, Champion, Bonds, Maidenform, and Bali, serving consumers worldwide through retail, wholesale, and online channels.
Gildan Activewear is a manufacturer of everyday basic apparel, including activewear, socks, and underwear, sold under a portfolio of owned and licensed brands, including Gildan, American Apparel, Comfort Colors, GOLDTOE, and Peds, to wholesalers, retailers, and lifestyle brands, with vertically integrated manufacturing facilities across the Americas and Asia.
On Tuesday, the Financial Times reported that Canada’s Gildan Activewear is nearing a deal to acquire Hanesbrands. The stock was trading at $4.83 before the report announced that the takeover could value the U.S. underwear-maker at about $5 billion, including debt.
Gildan expects to achieve at least $200 million in annual run-rate cost synergies across its supply chain, operations, and Selling, General, and Administrative (SG&A) expenses within three years. These savings are anticipated to be realized as follows: roughly $50 million in 2026, $100 million in 2027, and $50 million in 2028. Including these synergies, the combined company’s pro forma adjusted EBITDA for the 12 months ended June 29, 2025, would have been about $1.6 billion.
Gildan will keep its headquarters in Montréal, Québec, and the combined company will continue to have a significant presence in Winston-Salem, North Carolina. Gildan also plans to explore options for HanesBrands Australia, which could include a sale or other transaction.
The deal is expected to close in late 2025 or early 2026.
Gildan plans to replace HanesBrands’ existing loans and other debt, about $2 billion in total, with new financing.
Gildan has secured $2.3 billion in committed financing for the deal, consisting of a $1.2 billion bridge facility and $1.1 billion in term loans. Morgan Stanley Senior Funding and Canadian Imperial Bank of Commerce have committed to providing all the required financing.
HanesBrands was advised by Goldman Sachs and Evercore on financial matters, and by Jones Day and Blake, Cassels & Graydon on legal matters. Gildan received financial advice from Morgan Stanley and CIBC Capital Markets, and legal counsel from Sullivan & Cromwell and Stikeman Elliott.
The acquisition deal values Hanesbrands at 9.24 times its EBITDA.
For more insights into this merger and acquisition transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of Hanesbrands Inc. (HBI) by Gildan Activewear Inc. (GIL)
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Editor’s Note: Baranjot Kaur contributed to this article