Gildan Acquires HanesBrands to Create Global Basic Apparel Company

HanesBrands entered into an agreement with Gildan Activewear to be acquired for $4.4 billion.

The merger is said to bring together each company’s respective strengths, such as Gildan’s manufacturing network and HanesBrands’ go-to-market expertise and heritage brand presence in activewear.

The companies said the deal creates a “global basic apparel leader with proven operational expertise to drive significant value creation.” This includes increased product diversification and resilience, more balanced category and channel exposure, and expanded consumer reach.

“Our state-of-the-art, low-cost, vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation,” said Gildan CEO and president Glenn J. Chamandy in a statement. 

Gildan expects to generate at least $200 million in annual cost savings within three years by consolidating supply chains, streamlining operations and reducing overhead. Key areas of synergy include manufacturing and logistics, with projected savings of $50 million in 2026, $100 million in 2027 and another $50 million in 2028.

Gildan will also consider the strategic sale or other transaction for HanesBrands Australia.