In a strategic move reshaping the apparel industry, two of its biggest names are coming together. Gildan Activewear announced its agreement to acquire HanesBrands for $2.2 billion in a deal that promises to double Gildan’s revenue. This transformational transaction signals the emergence of a new powerhouse but also brings antitrust questions and strategic shifts as two giants unite.
Breaking Down the Deal Structure
According to both companies, HanesBrands shareholders will receive 87% of their compensation in Gildan stock and 13% in cash, with the cash portion expected to be about $290 million. Financing for the deal is secured through $2.3 billion in transaction financing, including bridge and term loans. The equity package represents a 24% premium over HanesBrands’ closing price on August 11, 2025. Upon closing, HanesBrands investors will own nearly 19.9% of the combined entity, a new force in a highly competitive field.
What Industry Leaders Are Saying
Gildan president and CEO Glenn Chamandy enthusiastically described the combination as a “historic moment.” He remarked, “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.”
HanesBrands CEO Steve Bratspies pointed to the opportunity for revitalization, noting, “We have great respect for Gildan’s manufacturing strength and long track record of success. We look forward to expanding upon HanesBrands’ portfolio of leading innerwear brands and opening new doors for growth and impact as part of Gildan.”
Bill Simon, HanesBrands board chair, added, “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.”
Strategic Implications and Antitrust Challenges
While the synergies are compelling, particularly the estimated annual cost savings within the next three years, industry watchers caution that the union may raise antitrust flags. Both companies remain dominant North American producers of underwear, hosiery, and shirt products at the heart of everyday wardrobes.
Analyst David Swartz noted, “HanesBrands and Gildan share some distribution and wholesale partners, and they both own and operate apparel manufacturing facilities in Central America. 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.”
Market observers estimate the combined company may command as much as approximately 40% of the basic apparel segment, which could reshape competition and supply channels and possibly trigger regulatory review. The transaction is subject to shareholder and regulatory approvals, with closing anticipated in late 2025 or early 2026.
Restructuring, Debt, and Future Plans
Another strategic element is Gildan’s plan to “initiate a review of strategic alternatives for HanesBrands Australia, which may include a sale or other transaction. The merger follows HanesBrands’ recent moves to strengthen its balance sheet, including the sale of the Champion brand.
Gildan will retain its headquarters but will maintain a strong operational footprint in its longtime home.
Underlying Motivations
While Hanes is a leader in men’s underwear and innerwear in North America and Australia, Gildan dominates bulk printwear but has struggled to build consumer brands. The merger positions Gildan to diversify its portfolio and expand its reach decisively.
