Gildan Activewear Acquires HanesBrands in $2.2B Deal

Gildan Activewear agreed to acquire HanesBrands for a deal implying an equity value of $2.2 billion and an enterprise value of $4.4 billion. Western Union and Sapiens also reported deals, while Teladoc Health and Perplexity were mentioned as key deals this week.

Gildan Activewear, Inc. (GIL) has agreed to acquire HanesBrands, Inc. (HBI) for an equity value of approximately $2.2 billion and an enterprise value of $4.4 billion. The deal, announced on August 13, 2025, positions Gildan as a global leader in the basics apparel sector. The transaction includes HanesBrands' debt obligations and involves a combination of cash and shares, with Gildan offering HanesBrands shareholders a price per share of approximately $6, representing a 24% premium on the share price at the close of trading last Monday [1].

The acquisition is expected to double Gildan's revenues and achieve a scale that sets it apart in the market [1]. Gildan expects the acquisition to boost its net sales by 3% to 5% annually, translating into a total of $200 million more through 2028. The company's headquarters will remain in Montreal, while maintaining a strong presence in HanesBrands' hometown of Winston-Salem, North Carolina [1]. The transaction is expected to be immediately accretive to Gildan's adjusted diluted EPS and 20%+ accretive to adjusted diluted EPS pro forma for expected run-rate cost synergies of $200 million [2].

In related news, Wells Fargo upgraded HanesBrands to Equal Weight from Underweight with a price target of $6, up from $5, following the merger announcement. The firm expects regulatory approval to be a non-issue, and the price to remain range-bound until the deal closes [2]. Western Union has also reported an acquisition deal, agreeing to acquire International Money Express Inc. (IMXI) or Intermex for $16.00 per share in cash, representing approximately $500 million in equity and enterprise value. This reflects a roughly 50% premium to its 90-day volume-weighted average price [3]. Teladoc Health and Perplexity were mentioned as key deals this week.

References:
[1] https://www.modaes.com/global/companies/gildan-activewear-seals-the-purchase-of-hanesbrands-for-22-billion
[2] https://ir.hanesbrands.com/news-releases/news-release-details/gildan-and-hanesbrands-agree-combine-create-global-basic-apparel
[3] https://www.rttnews.com/3564277/western-union-to-acquire-international-money-express-in-500-mln-deal.aspx