Gildan Activewear Acquires HanesBrands for $2.2B, Analysts Predict 17.60% Upside

Gildan Activewear has acquired HanesBrands in a $2.2 billion deal to solidify its market presence and diversify its product portfolio. Analysts predict a 17.60% upside for Gildan Activewear stock, while GuruFocus estimates suggest a potential downside in GF Value over the next year. The acquisition aims to strengthen Gildan's position in the competitive apparel industry.

Gildan Activewear Inc. (TSX: GIL and NYSE: GIL) has announced the acquisition of HanesBrands Inc. (NYSE: HBI) in a transaction valued at approximately $2.2 billion. The deal aims to strengthen Gildan's market position and diversify its product portfolio, combining two iconic brands in the apparel industry.

The acquisition, which is expected to close in late 2025 or early 2026, will see Gildan acquire HanesBrands for an enterprise value of approximately $4.4 billion. The transaction will see HanesBrands shareholders receive 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands common stock. This offer represents a premium of approximately 24% to HanesBrands' closing price on August 11, 2025.

The combination of Gildan and HanesBrands will create a global leader in basic apparel, leveraging the strengths of both companies. Gildan will benefit from HanesBrands' iconic innerwear brands and retail presence, while HanesBrands will gain access to Gildan's state-of-the-art low-cost vertically integrated manufacturing network. The combined company is expected to achieve significant cost synergies, with at least $200 million in annual run-rate cost synergies within three years of closing.

Analysts predict a 17.60% upside for Gildan Activewear stock following the acquisition, while GuruFocus estimates suggest a potential downside in GF Value over the next year. The acquisition aims to enhance Gildan's competitive position in the apparel industry, with the combined company expected to have a strong market presence and diversified product offerings.

Gildan's headquarters will remain in Montreal, Quebec, while the combined company will maintain a strong presence in Winston-Salem, North Carolina. Gildan intends to review strategic alternatives for HanesBrands Australia, which could include a sale or other transaction.

The transaction is subject to HanesBrands shareholder approval and other customary closing conditions, including regulatory approvals. Gildan expects to refinance HanesBrands' debt totaling approximately $2 billion and has obtained $2.3 billion in committed transaction financing.

Gildan's 2025 full-year revenue and EPS guidance remain unchanged, with the company reaffirming its outlook following the acquisition.

References:
[1] https://ir.hanesbrands.com/news-releases/news-release-details/gildan-and-hanesbrands-agree-combine-create-global-basic-apparel