Gildan Surges 11.83% on $2.2B Merger with HanesBrands, Tops 500 by Volume

On August 13, 2025, Gildan Activewear (GIL) surged 11.83% to close with a trading volume of $250 million, up 95.41% from the previous day. The stock’s rally followed the announcement of a $2.2 billion merger with HanesBrands, creating a vertically integrated apparel leader with combined annual cost synergies of $200 million by 2028. The deal, structured as 0.102 shares of Gildan and $0.80 cash per HanesBrands share, values the latter at an 8.9x multiple of its adjusted EBITDA. HanesBrands shareholders will own 19.9% of Gildan post-merger, with the combined entity expected to double revenue and strengthen retail and activewear market presence.

The transaction underscores Gildan’s strategic shift toward expanding its low-cost manufacturing network and diversifying brand portfolios. By integrating HanesBrands’ iconic innerwear brands with Gildan’s wholesale distribution channels, the merger aims to enhance cross-channel retail penetration and operational efficiency. Executives highlighted potential $50 million in annual cost synergies by 2026, with pro forma adjusted EBITDA projected to reach $1.6 billion. The move also aligns with Gildan’s long-term goal of maintaining an investment-grade credit profile while prioritizing shareholder returns through dividends and buybacks post-debt refinancing.

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