MONTREAL — 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.
Companies in this story: (TSX:GIL)
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