Gildan Activewear: KDJ Death Cross and Bearish Marubozu Signal Downtrend

Gildan Activewear's 15-minute chart has recently exhibited a significant bearish trend, as evidenced by the KDJ Death Cross and Bearish Marubozu at 08/22/2025 12:00. This suggests that the momentum of the stock price is shifting towards the downside, with a potential for further decline. Sellers currently have control of the market, and it is likely that bearish momentum will continue.

Gildan Activewear Inc. (TSX: GIL, NYSE: GIL) has announced a significant acquisition, acquiring HanesBrands Inc. (NYSE: HBI) for approximately $2.2 billion. This deal aims to solidify Gildan's market position and diversify its product portfolio by combining two iconic brands in the apparel industry. The acquisition is expected to close in late 2025 or early 2026, with Gildan acquiring HanesBrands for an enterprise value of approximately $4.4 billion.

HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands common stock, representing 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