Gildan Activewear has agreed to buy US-based undergarments maker Hanesbrands for $2.2 billion in cash and stock. The deal, valued at around $6 per share, represents a 24% premium to Monday’s close. Gildan will pay this price for each of Hanesbrands’ shares.
The acquisition combines Hanesbrands’ retail presence with Gildan’s strong wholesale market presence across various regions. Citigroup analysts have praised the deal, saying it makes sense on paper and that Gildan can manage Hanesbrands’ business more efficiently due to its expertise in low-cost manufacturing.
Hanesbrands has faced challenges in recent years, including underinvestment, debt, and mixed results from acquisitions since its spinoff from Sara Lee in 2006. The company’s sales have declined over the last three years due to competition in the athleisure market, but it has seen improvements in margins through cost-cutting measures and supply-chain enhancements.
Gildan plans to review strategic alternatives for Hanesbrands Australia after the deal closes, which may include a sale or other transaction. The transaction is expected to close in late 2025 or early 2026 and is likely to be immediately accretive to adjusted profit per share.
Source: https://www.cnbc.com/2025/08/13/hanesbrands-agrees-to-takeover-by-canadas-gildan-activewear.html