Gildan buys Hanesbrands for $2.2 billion to grow basic apparel
Gildan Activewear has agreed to acquire U.S. undergarment maker Hanesbrands in a cash-and-stock deal valued at $2.2 billion, the companies announced Wednesday. The Canadian apparel manufacturer will pay roughly $6 per Hanesbrands share, a 24% premium to Monday’s closing price, in a move aimed at strengthening its position in the global basic apparel market.
The acquisition will unite Gildan’s wholesale-oriented brands — including Anvil, Gildan, and Gold Toe — with Hanesbrands’ strong retail presence through household names such as Hanes, Bonds, Maidenform, and Playtex. The combined company will have a diversified geographic footprint spanning the United States, Canada, Latin America, Asia-Pacific, and Europe.
Shares of Hanesbrands gained 2.6% to $6.34 in early Wednesday trading, following a 40% surge the day before when reports of the buyout first surfaced. The Financial Times initially broke the news of the potential deal on Tuesday, with Reuters and other outlets quickly following.
Citigroup analysts welcomed the merger, saying it “makes sense on paper” and could allow Gildan to manage Hanesbrands’ operations more efficiently, leveraging its expertise in low-cost manufacturing.
For Hanesbrands, the sale marks the end of a challenging period. Since its 2006 spinoff from Sara Lee, the company has struggled with heavy debt, underinvestment, and acquisitions that delivered uneven results. Over the past three years, sales have declined amid intensifying competition from athleisure brands and waning consumer demand. However, recent cost-cutting measures and supply chain improvements have helped improve margins.
In line with its renewed focus on core categories, Hanesbrands sold its Champion sportswear brand to Authentic Brands Group for $1.2 billion last year. Gildan said it will review “strategic alternatives” for Hanesbrands Australia after the deal closes, which could include a sale.
The acquisition is expected to close in late 2025 or early 2026 and is projected to be immediately accretive to Gildan’s adjusted earnings per share.
