Gildan Activewear Inc. and HanesBrands Inc. have announced they have entered into a definitive merger agreement under which Gildan will acquire HanesBrands. According to Gildan, the transaction “implies an equity value of approximately $2.2 billion and an enterprise value of approximately $4.4 billion for HanesBrands, based on the closing price of Gildan common stock on August 11, 2025.”
“Today is a historic moment in Gildan’s journey as we look to join forces with HanesBrands. We are extremely pleased to welcome the HanesBrands’ team to the Gildan family,” said Glenn J. Chamandy, president and chief executive officer at Gildan. “With this transaction, our revenues will double, and we achieve a scale that distinctly sets us apart. The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage Hanes brand presence in activewear across channels, while enhancing Gildan’s retail reach for its portfolio of brands.”
For his part, Steve Bratspies, CEO of HanesBrands, said, “This transaction represents a powerful alignment of HanesBrands’ and Gildan’s shared commitment to quality, innovation, and excellence. We have great respect for Gildan’s manufacturing strength and long track record of success. We look forward to expanding upon HanesBrands’ portfolio of leading innerwear brands and go-to-market expertise and opening new doors for growth and impact as part of Gildan.”
Expanded Scale/Reach for Blank Apparel Manufacturing and Distribution
According to the two companies, among the reasons behind the decision to combine forces were:
- Expanded scale and strengthened positioning. “The scale and capabilities of the combined company further enhance Gildan’s position in basic apparel as one of the largest global apparel players by number of units sold, with strong innovation from yarn spinning to end product, and greater supply chain capabilities to support customers.”
- Strengthened and complementary go-to-market capabilities. “The two businesses are ideally matched to unlock value, bringing together Gildan’s leadership in activewear with HanesBrands’ leading innerwear retail presence and expertise. The combination will enhance go-to-market capabilities and continued growth in all channels, by accelerating Gildan’s retail penetration with its portfolio of brands while supporting the iconic Hanes brand growth in activewear in the retail channel.”
- Enhanced product diversification and resiliency. “The combination will result in meaningfully balanced category and channel exposure. 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.”
- State-of-the-art low-cost vertically integrated manufacturing network. “The combined global supply chain is expected to enhance Gildan’s low-cost advantage, along with the opportunity for value creation by driving manufacturing synergies. Gildan will utilize its best-in-class low-cost manufacturing structure and operational expertise, efficiently reallocate production volumes across geographies, and optimize its network, distribution and logistics infrastructure, leaning on its proven operational capabilities.”
Moving forward, the company said Gildan’s headquarters will continue to be located in Montréal, Québec. The combined company will also continue to maintain a strong presence in Winston-Salem, North Carolina. In addition, Gildan said it intends to initiate a review of strategic alternatives for HanesBrands Australia, which could include a sale or other transaction. For complete details on the transaction, click here.
