Key Deals: Gildan Activewear Acquires HanesBrands, Teladoc Health, and More

Gildan Activewear has agreed to acquire HanesBrands in a deal with an implied equity value of ~$2.2 billion and an enterprise value of ~$4.4 billion. Other key deals reported this week include Sapiens acquisition of Perplexity, and Teladoc Health's acquisition of Advance Medical.

Gildan Activewear Inc. (GIL) has agreed to acquire HanesBrands Inc. (HBI) in a deal with an implied equity value of approximately $2.2 billion and an enterprise value of approximately $4.4 billion [1]. The acquisition, expected to close in late 2025 or early 2026, will see Gildan acquire HanesBrands, doubling Gildan's revenues and strengthening its position in the basic apparel market. The combination will leverage Gildan's leadership in activewear and HanesBrands' expertise in innerwear, enhancing go-to-market capabilities and accelerating growth across channels [1].

Wells Fargo has upgraded HanesBrands to an Equal Weight rating from Underweight with a price target of $6, up from $5, following the merger announcement [2]. The firm expects regulatory approval to be a non-issue, and the price to remain range-bound until the deal closes.

Gildan expects to realize at least $200 million in annual run-rate cost synergies within three years, with significant savings anticipated in 2026, 2027, and 2028. The transaction is expected to be immediately accretive to Gildan's adjusted diluted EPS and 20%+ accretive pro forma for expected run-rate synergies of $200 million [1].

Other notable deals reported this week include Advent International's acquisition of Sapiens International Corporation N.V. for $2.5 billion, representing a 64% premium on Sapiens' closing price last week [3]. Additionally, Teladoc Health has acquired Telecare, an Australian tech-enabled provider of specialist and allied health care via virtual delivery [4].

References:
[1] https://ir.hanesbrands.com/news-releases/news-release-details/gildan-and-hanesbrands-agree-combine-create-global-basic-apparel
[2] https://www.ainvest.com/news/wells-fargo-upgrades-hanesbrands-equal-weight-acquisition-deal-gildan-activewear-2508/
[3] https://www.ainvest.com/news/advent-acquires-sapiens-2-5-billion-representing-64-premium-2508/
[4] https://natlawreview.com/press-releases/teladoc-health-acquires-telecare-expanding-access-specialist-and-allied