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Yahoo
4 days ago
- Business
- Yahoo
Canada's Gildan to acquire US apparel brand HanesBrands for $4.4bn
Canadian apparel manufacturer Gildan Activewear has signed a definitive merger agreement to acquire US apparel brandHanesBrands for an enterprise value of $4.4bn. The transaction will combine the strengths of both companies to create what is described as a 'global basic apparel leader'. The merger will expand Gildan's scale and strengthen its market positioning, combining its activewear leadership with HanesBrands' innerwear retail expertise. Gildan president and CEO Glenn Chamandy stated: 'With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart. The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage Hanes brand presence in activewear across channels, while enhancing Gildan's retail reach for its portfolio of brands.' Gildan's headquarters will remain in Montréal, Québec, with a combined presence in Winston-Salem, North Carolina. HanesBrands shareholders will receive 0.102 common shares of Gildan and $0.80 in cash for each share of HanesBrands stock, owning 19.9% of Gildan shares post-transaction. The transaction, subject to shareholder and regulatory approvals, is expected to close between late 2025 and early 2026. The combined company will benefit from enhanced product diversification, an advanced low-cost manufacturing network and significant synergy opportunities, with at least $200m in annual cost synergies expected by 2028. Gildan has obtained $2.3bn of committed financing for the acquisition and anticipates a net debt leverage ratio of 2.6 times adjusted earnings before interest, taxes, depreciation and amortisation at closing. Gildan has reaffirmed its full-year 2025 revenue and earnings per share guidance and provided a three-year outlook for 2026 to 2028, anticipating 3% to 5% net sales growth, 3% to 4% capital expenditures annually to support growth and vertical integration, and enhanced shareholder returns. HanesBrands board of directors chairman Bill Simon stated: 'As part of Gildan, HanesBrands will benefit from an even stronger financial and operational foundation that will provide new growth opportunities – helping to power further innovation, a broader product offering and greater reach across channels and geographies. We are confident that this transaction and the next chapter with Gildan is the right next step for HanesBrands and will honour and build on its long history for the benefit of all our stakeholders.' Morgan Stanley & Co and CIBC Capital Markets acted as financial advisors to Gildan while Sullivan & Cromwell and Stikeman Elliott as legal advisors. Goldman Sachs & Co and Evercore served as lead financial advisors to Hanesbrands, and Jones Day and Blake, Cassels & Graydon were legal advisors. "Canada's Gildan to acquire US apparel brand HanesBrands for $4.4bn" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
6 days ago
- Business
- Yahoo
Gildan Activewear to buy HanesBrands for $2.2 billion
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. Gildan Activewear is buying HanesBrands for $2.2 billion, the two companies said Wednesday. The deal consists of 87% stock and 13% cash per every HanesBrands share, with the cash portion anticipated to be about $290 million. Gildan will pay for HanesBrands through $2.3 billion in transaction financing, through bridge facility and term loans. The deal implies a $4.4 billion enterprise value for HanesBrands. Gildan CEO Glenn Chamandy said the combination will double Gildan's revenue and create 'scale that distinctly sets us apart.' Gildan will maintain its headquarters in Montreal but will have a 'strong presence' in Winston-Salem, North Carolina, where HanesBrands is based. In addition, Gildan said it intends to 'initiate a review of strategic alternatives for HanesBrands Australia,' which could include a sale or other transaction. The deal is expected to close in late 2025 or early 2026. A merger between HanesBrands and Gildan would make sense for both companies, David Swartz, senior equity analyst at Morningstar Research Services, said in a client note. While HanesBrands is well known and is a share leader in men's underwear and other categories in North America and Australia, Gildan is strong in domestic printwear but has failed at consumer branding, per Swartz. The potential combination of Gildan and HanesBrands could raise antitrust concerns, however, since both companies are North American producers of men's and women's underwear, hosiery and shirts, Swartz said. '[HanesBrands and Gildan] share some distribution and wholesale partners, and they both own and operate apparel manufacturing facilities in Central America,' Swartz said. 'However, they sell their products through different channels — Hanesbrands mainly sells branded products to consumers through mass stores while Gildan specializes in selling imprintable shirts.' HanesBrands was able to pay down a significant amount of debt last year by selling Champion, a brand that caused consistent revenue declines for the company. On its most recent earnings call, HanesBrands didn't release updates on the search for a successor for CEO Steve Bratspies, who is set to step down at the end of the year. Swartz pointed to these things as signs that HanesBrands was eying a potential sale. Gildan has had its own fair share of challenges. The company's former board fired Chamandy in late 2023, leading to a monthslong proxy battle and a complete board turnover, resulting in Chamandy's reinstatement. Chamandy's interest in a deal with HanesBrands was reportedly a reason for his firing, Bloomberg reported. 'Chamandy has preferred to highlight internal opportunities since his reinstatement, but he apparently sees value in adding Hanesbrands,' Swartz said. The announcement comes at a time when Gildan has experienced declining underwear and hosiery sales, while HanesBrands is focusing on gaining market share in the category. Last month, Gildan reported Q2 net sales of $919 million, a 6.5% year-over-year increase, which the company called a record. Gildan's activewear segment grew 12% for the period, but its hosiery and underwear category fell about 23%, which Gildan said was due to 'lower sales volumes and unfavourable mix, as the category experienced continued broader market weakness.' The company previously attributed the decline to the phasing out of a licensing deal with Under Armour. The underwear segment represents about 10% of Gildan's total revenue, per Morningstar. Meanwhile, HanesBrands's most recent revenue results came in above expectations at $991 million for the second quarter, a 1.8% increase year over year. However, the company pointed to a slowdown in the intimates market. HanesBrands has been an independent company since 2006, when the Sara Lee Corporation spun out HanesBrands as its own publicly traded company. HanesBrands' nearly 20 years as an independent company have been marked by 'excessive debt, underinvestment in its operations, ill-timed share buybacks, and disappointing acquisitions,' Swartz said. Gildan was founded in 1984. In addition to its namesake brand, it owns Comfort Colors, American Apparel, Goldtoe and Peds. Recommended Reading Gildan Activewear considers sale Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Gildan to Buy Hanesbrands for $2.2 Billion
Gildan Activewear Inc. agreed to buy US underwear maker Hanesbrands Inc. — aiming to double its annual sales — for about $2.2 billion in cash and stock. Montreal-based Gildan is offering Hanesbrands holders roughly $6 a share, based on the companies' closing prices on Aug. 11, representing a premium of about 24% to the closing price on that date, according to a statement Wednesday. Including debt, the company's largest deal ever values Hanesbrands at about $4.4 billion. 'With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,' Gildan's Chief Executive Officer Glenn Chamandy said in the press release. The company is a global player in the cheap-clothing trade that churns out T-shirts and socks for the likes of Walmart Inc. and Nike Inc. and under its own brands, including American Apparel. Bloomberg's Abigail Gilmartin reports. (Source: Bloomberg)
Toronto Sun
6 days ago
- Business
- Toronto Sun
Gildan Activewear signs deal to buy HanesBrands for US$2.2B
Gildan chief executive Glenn Chamandy called it a historic moment for the company Published Aug 13, 2025 • 1 minute read The Gildan logo is seen outside their offices in Montreal, Monday, Dec. 11, 2023. THE CANADIAN PRESS/Christinne Muschi MONTREAL — Gildan Activewear Inc. has signed a deal to buy HanesBrands Inc. for US$2.2 billion in shares and cash. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Gildan chief executive Glenn Chamandy called it a historic moment for the company. 'The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage 'Hanes' brand presence in activewear across channels, while enhancing Gildan's retail reach for its portfolio of brands,' Chamandy said in a statement. 'We are excited for the next stage of growth and remain focused on supporting our customers and continuing to drive long term shareholder value.' Under the terms of the agreement, HanesBrands shareholders will receive 0.102 shares of Gildan and 80 cents US in cash for each share. The offer implies a value of US$6 per HanesBrands share based on the Gildan closing share price on Monday. This advertisement has not loaded yet, but your article continues below. HanesBrands chair Bill Simon said the deal delivers significant and certain value for the company's shareholders, both through immediate cash and upside potential of the combined company. 'As part of Gildan, HanesBrands will benefit from an even stronger financial and operational foundation that will provide new growth opportunities — helping to power further innovation, a broader product offering and greater reach across channels and geographies,' Simon said in a statement. 'We are confident that this transaction and the next chapter with Gildan is the right next step for HanesBrands.' The transaction is subject to HanesBrands shareholder approval and other customary closing conditions. It is expected to close in late 2025 or early 2026. HanesBrands shareholders will own about 19.9 per cent of Gildan shares on a non-diluted basis once the deal is complete. Sunshine Girls Sunshine Girls Toronto Blue Jays Relationships Money News
CTV News
6 days ago
- Business
- CTV News
Gildan Activewear signs deal to buy HanesBrands for US$2.2B in shares and cash
Signage is seen at Gildan Activewear Inc.'s annual meeting in Montreal, Tuesday, May 28, 2024. THE CANADIAN PRESS/Christinne Muschi Gildan Activewear Inc. has signed a deal to buy HanesBrands Inc. for US$2.2 billion in shares and cash. Gildan chief executive Glenn Chamandy called it a historic moment for the company. 'The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage 'Hanes' brand presence in activewear across channels, while enhancing Gildan's retail reach for its portfolio of brands,' Chamandy said in a statement. 'We are excited for the next stage of growth and remain focused on supporting our customers and continuing to drive long term shareholder value.' Under the terms of the agreement, HanesBrands shareholders will receive 0.102 shares of Gildan and 80 cents US in cash for each share. The offer implies a value of US$6 per HanesBrands share based on the Gildan closing share price on Monday. HanesBrands chair Bill Simon said the deal delivers significant and certain value for the company's shareholders, both through immediate cash and upside potential of the combined company. 'As part of Gildan, HanesBrands will benefit from an even stronger financial and operational foundation that will provide new growth opportunities – helping to power further innovation, a broader product offering and greater reach across channels and geographies,' Simon said in a statement. 'We are confident that this transaction and the next chapter with Gildan is the right next step for HanesBrands.' The transaction is subject to HanesBrands shareholder approval and other customary closing conditions. It is expected to close in late 2025 or early 2026. HanesBrands shareholders will own about 19.9 per cent of Gildan shares on a non-diluted basis once the deal is complete. - This report by The Canadian Press was first published Aug. 13, 2025.
