Gildan's $4.4B HanesBrands Buyout Drives 2.38% Surge as Stock Ranks 449th in $220M Volume

On August 14, 2025, Gildan Activewear (GIL) closed with a 2.38% gain, trading with a daily volume of $220 million, ranking 449th in market activity. This performance follows a transformative acquisition announced earlier in the month that reshapes the global apparel landscape.

The Canadian manufacturer finalized a $4.4 billion deal to acquire HanesBrands, creating a combined entity positioned as a dominant force in basic apparel. The transaction, structured as a share-and-cash exchange (0.102 Gildan shares plus $0.80 cash per HanesBrands share), will grant HanesBrands shareholders 19.9% ownership in the merged company. Post-merger operations will maintain dual headquarters in Montreal and Winston-Salem, North Carolina, with strategic emphasis on expanding activewear distribution and retail presence.

Financial details highlight $2.3 billion in committed financing for the acquisition, targeting a net debt leverage ratio of 2.6x EBITDA post-closing. The combined entity anticipates at least $200 million in annual cost synergies by 2028, supported by an integrated low-cost manufacturing network. Gildan reaffirmed 2025 earnings guidance while outlining a three-year growth plan (2026–2028) projecting 3–5% net sales expansion and enhanced shareholder returns through capital discipline and vertical integration.

The transaction, pending regulatory and shareholder approvals, is expected to close by late 2025 or early 2026. Both companies emphasized strengthened operational foundations, with HanesBrands citing improved innovation capacity and geographic reach under Gildan’s ownership. Strategic advisors for the deal include Morgan Stanley, CIBC, and Goldman Sachs, reflecting the transaction’s complexity and scale.

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