Gildan Activewear to Acquire HanesBrands for $2.2 Billion Dollars

In a significant move within the apparel industry, Gildan Activewear has announced its intention to acquire HanesBrands for $2.2 billion. The deal, expected to close in late 2025 or early 2026, implies a $4.4 billion enterprise value for HanesBrands.

The transaction will be funded through $2.3 billion in transaction financing, with 87% of the payment made in Gildan stock and 13% in cash, amounting to approximately $290 million.

HanesBrands, an independent company since its spin-off from the Sara Lee Corporation in 2006, has faced challenges over nearly two decades. These include excessive debt, underinvestment in operations, ill-timed share buybacks, and disappointing acquisitions. On a positive note, the company's most recent revenue results came in above expectations at $991 million for the second quarter, representing a 1.8% increase year over year.

Gildan, on the other hand, reported a record Q2 net sales of $919 million, a 6.5% year-over-year increase. However, the company's hosiery and underwear category saw a decline of about 23%, while its activewear segment grew by 12%.

The acquisition is expected to double Gildan's revenue, according to Gildan CEO Glenn Chamandy. He also mentioned that the company intends to initiate a review of strategic alternatives for HanesBrands Australia, which could include a sale or other transaction.

The deal comes after a tumultuous period for Gildan. In late 2023, Chamandy was fired, only to be reinstated after a monthslong proxy battle and a complete board turnover. Chamandy's interest in a deal with HanesBrands was reportedly the reason for his initial dismissal, according to Bloomberg.

The new CEO of HanesBrands, following the departure of Steve Bratspies at the end of 2025, has not been explicitly named in the available sources. Bratspies announced his plans to step down earlier in 2025, but no successor's name is mentioned before Gildan announced its acquisition of HanesBrands.

HanesBrands has been focusing on gaining market share in the underwear and hosiery category, while Gildan has been experiencing declining sales in these categories. Gildan's portfolio includes brands such as its namesake, Comfort Colors, American Apparel, Goldtoe, and Peds.

The acquisition will result in Gildan maintaining its headquarters in Montreal but establishing a "strong presence" in Winston-Salem, North Carolina, where HanesBrands is currently based. The details of the integration and operational changes will be announced in due course.