Canada’s Gildan Aims to Double Sales With Cash-and-Stock Buyout Amid Busy M&A Season
Gildan Activewear Inc. has agreed to acquire U.S.-based Hanesbrands Inc. in a cash-and-stock transaction valued at approximately $2.2 billion, marking the Canadian apparel firm’s largest deal to date.
The transaction, announced Wednesday, offers Hanesbrands shareholders the equivalent of $6 per share, based on closing prices as of August 11—a 24 percent premium. Including Hanesbrands’ debt, the total enterprise value of the deal is about $4.4 billion.
“With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” said Gildan CEO Glenn Chamandy in the statement.
The acquisition would bring Gildan’s projected annual revenue from $3.4 billion this year closer to $7 billion, combining it with Hanesbrands’ expected $3.5 billion in sales. Gildan also expects at least $200 million in cost synergies over three years and estimates the deal will be at least 20 percent accretive to earnings per share.
Despite a 28 percent surge in Hanesbrands shares on Tuesday amid speculation of the deal, the stock fell 4 percent in premarket trading following the announcement.
The deal is expected to close by the end of the first quarter in 2026, after which Gildan plans to review strategic options for Hanesbrands’ Australia division.
The move is part of a broader uptick in dealmaking activity. If current momentum holds, global M&A deal values could top $1 trillion in the third quarter—only the second time in history, according to Bloomberg data.
The acquisition also follows a period of internal conflict at Gildan. Last year, Chamandy was ousted by the board over concerns that such a large acquisition would overextend the company’s balance sheet. He was later reinstated after a shareholder-led proxy battle.
Alongside the deal announcement, Gildan reaffirmed its 2025 earnings and revenue guidance and introduced a three-year outlook through 2028. The company projects net sales to grow at a compound annual rate of 3 to 5 percent, factoring in the integration of Hanesbrands.
Glenn J. Chamandy, president and chief executive officer of Gildan, stated, “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. Further, our state-of-the-art, low-cost vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation. We are excited for the next stage of growth and remain focused on supporting our customers and continuing to drive long term shareholder value.”
Michael Kneeland, chair of Gildan, commented, “Hanes is a distinguished brand with a proud legacy, and by joining forces with HanesBrands, we are forging an exceptional organization built on the strengths of both companies. Leveraging best practices and the exceptional teams from each side, we are poised to deliver outstanding value to our customers and shareholders.”
Gildan’s headquarters will continue to be located in Montréal. The company will also maintain a significant presence in Winston-Salem, North Carolina, the home base of HanesBrands.