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: TSX, GIL: NYSE) has announced a definitive merger agreement to acquire HanesBrands Inc. (HBI: NYSE) in a deal valued at approximately $2.2 billion in equity and $4.4 billion in enterprise value [1]. The acquisition will create a global leader in basic apparel, combining Gildan's strengths in activewear with HanesBrands' leading innerwear brands and retail presence.

The transaction, expected to close in late 2025 or early 2026, will see Gildan shareholders own approximately 19.9% of Gildan shares on a non-diluted basis upon closing. 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 [1].

The combined entity is expected to achieve significant cost synergies, with at least $200 million in annual run-rate cost synergies within three years of closing. This includes $50 million in 2026, $100 million in 2027, and $50 million in 2028 [1]. The deal is expected to be immediately accretive to Gildan's adjusted diluted EPS and 20%+ accretive to adjusted diluted EPS pro forma for expected run-rate cost synergies of $200 million.

Gildan's headquarters will remain in Montréal, Québec, while the combined company will maintain a strong presence in Winston-Salem, North Carolina. Gildan also plans to review strategic alternatives for HanesBrands Australia, which could include a sale or other transaction [1].

Other notable deals reported this week include Sapiens acquisition of Perplexity and Teladoc Health's acquisition of Advance Medical [1].

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