Gildan Activewear to acquire HanesBrands

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Gildan Activewear (NYSE:GIL [https://seekingalpha.com/symbol/GIL]) has agreed to acquire HanesBrands (NYSE:HBI [https://seekingalpha.com/symbol/HBI]) in a deal that implies an equity value of ~$2.2 billion and an enterprise value of ~$4.4 billion for HanesBrands.

Under the terms of the merger agreement, HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands common stock. The implied transaction consideration is approximately 87% stock and 13% cash for every HanesBrands share.

The transaction is expected to close in late 2025 or early 2026. Upon closing, HanesBrands shareholders will own ~19.9% of Gildan shares on a non-diluted basis.

“The combination will create a global basic apparel leader, with access to iconic innerwear brands and a further strengthened low-cost vertically integrated manufacturing network. The addition of HanesBrands’ iconic innerwear brands enhances Gildan’s product offering and diversification, broadening its consumer reach while further reinforcing its resilience to seasonal and cyclical variations,” the company said.

The transaction is expected to be immediately accretive to Gildan’s adjusted diluted EPS and 20%+ accretive to adjusted diluted EPS pro forma for expected annual run rate synergies of $200 million.

Gildan (NYSE:GIL [https://seekingalpha.com/symbol/GIL]) has identified at least $200 million in expected annual run-rate cost synergies across supply chain, operations and SG&A that it expects to realize within three years.

HBI shares fell 7.7% premarket.

Source: Press Release [https://seekingalpha.com/pr/20199057-gildan-and-hanesbrands-agree-to-combine-to-create-a-global-basic-apparel-leader]

MORE ON HANESBRANDS, GILDAN ACTIVEWEAR INC.

* Hanesbrands Looks Undervalued With 2025 Guidance Increase And Transformative Initiatives [https://seekingalpha.com/article/4812845-hanesbrands-looks-undervalued-with-2025-guidance-increase-and-transformative-initiatives]
* Hanesbrands Inc. (HBI) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4810340-hanesbrands-inc-hbi-q2-2025-earnings-call-transcript]
* Gildan Strengthens Its Grip On The Basics Market Amid Tariffs [https://seekingalpha.com/article/4808033-gildan-strenghtens-its-grip-on-the-basics-market-amid-tariffs]
* Hanesbrands rises on report of potential deal with Gildan Activewear [https://seekingalpha.com/news/4483664-canadas-gildan-nears-deal-to-buy-hanesbrands-for-about-5-billion-ft-reports]
* Hanesbrands targets $3.53B in 2025 sales after margin gains and new business growth [https://seekingalpha.com/news/4481506-hanesbrands-targets-3_53b-in-2025-sales-after-margin-gains-and-new-business-growth]