On August 13, 2025, the apparel industry saw one of its biggest shake-ups in years as Gildan acquires HanesBrands in a deal valued at approximately $2.2 billion in equity, or $4.4 billion including debt. The agreement, unanimously approved by both companies’ boards, is set to double Gildan’s revenues and unite two of the most recognized names in basic apparel and promotional products. The transaction is expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals.
Under the terms of the deal, HanesBrands shareholders will receive 0.102 Gildan shares and $0.80 in cash for each HanesBrands share they own, a package representing a 24% premium to HanesBrands’ closing price on August 11, 2025. Upon closing, HanesBrands investors will hold about 19.9% of the combined company on a non-diluted basis. Gildan anticipates the acquisition will be immediately accretive to its adjusted earnings per share and deliver $200 million in annual cost synergies within three years.
Calling the merger a “historic moment,” Glenn J. Chamandy, president and CEO of Gildan, said, “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.”
Steve Bratspies, CEO of HanesBrands, framed the deal as an 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.”
Gildan Acquires HanesBrands: A Landmark $4.4 Billion Deal Reshaping The Apparel Industry
The agreement between Gildan Activewear Inc. and HanesBrands Inc. not only marks one of the largest apparel mergers in recent memory but also signals a major strategic shift for both companies. Announced on August 13, 2025, the transaction is valued at roughly $2.2 billion in equity, or $4.4 billion including debt, according to company statements and The Wall Street Journal.
Under the deal’s terms, HanesBrands shareholders will receive 0.102 Gildan shares plus $0.80 in cash for each share they own, a combination that reflects a 24% premium over HanesBrands’ closing price on August 11, 2025. Once completed, HanesBrands shareholders will own approximately 19.9% of the combined company on a non-diluted basis.
From a financial standpoint, Gildan says the acquisition will be immediately accretive to adjusted earnings per share, projecting $200 million in annual run-rate cost synergies to be fully realized within three years of closing. Those savings are expected to come from operational efficiencies, optimized manufacturing, and a strengthened supply chain across both wholesale and retail channels.
Glenn J. Chamandy, Gildan’s president and CEO, emphasized the scale and potential of the deal: “Our state-of-the-art, low-cost, vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation. This is about creating a combined company that can lead the market in quality, sustainability, and product variety.”
Bill Simon, chairman of HanesBrands’ board of directors, echoed this optimism, stating, “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.”
The merger is expected to close in late 2025 or early 2026, with Gildan maintaining its headquarters in Montreal, Canada, and the combined company continuing a significant presence in Winston-Salem, North Carolina.
Gildan Acquires HanesBrands: Strategic Benefits, Market Reach, And Financial Impact
The Gildan–HanesBrands merger represents more than just a financial transaction; it’s a calculated move to reshape the competitive landscape of the global apparel and promotional products market. By uniting two of the industry’s most recognized players, the combined company will leverage complementary strengths: Gildan’s vertically integrated manufacturing and cost efficiency, and HanesBrands’ powerful retail presence and brand equity in household names like Hanes, Maidenform, and Bali.
For Gildan, the acquisition doubles annual revenues and significantly broadens its product portfolio beyond its core activewear and basics. Glenn J. Chamandy, Gildan’s president and CEO, highlighted this expansion, stating, “The combination 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.”
From HanesBrands’ perspective, the deal provides an infusion of operational stability and manufacturing expertise at a time when the company has faced mounting challenges. Hanes reported a $95.6 million loss in 2023, followed by the sale of its Champion brand to Authentic Brands Group in October 2024. These moves underscore the importance of aligning with a partner that can deliver efficiencies and unlock new growth opportunities.
Industry insiders say the combined scale could create ripple effects across supply chains and wholesale distribution. In the promotional products sector, where both brands have strong footholds, this deal could consolidate supplier relationships and streamline inventory availability for decorators, distributors, and retailers.
Frank Myers, CEO of S&S Activewear, which has exclusive partnerships with both Gildan and Hanes in 2025, said about the merger, “This combination brings together two companies that share our deep commitment to customers, backed by highly reliable supply chains and a strong focus on sustainability, quality and product innovation.”
The transaction could also intensify competition with other major apparel suppliers and challenge smaller brands to differentiate through niche offerings, premium positioning, or rapid turnaround capabilities. With $200 million in projected annual cost synergies, Gildan will have the flexibility to invest in product innovation, sustainability initiatives, and potentially more aggressive pricing strategies, all of which could reshape market dynamics.
How The Gildan–HanesBrands Merger Creates A New Competitive Powerhouse
One of the most compelling aspects of the Gildan–HanesBrands deal is the projected $200 million in annual run-rate cost synergies the combined company expects to achieve within three years of closing. These savings will primarily stem from operational efficiencies, optimized manufacturing, shared logistics, and enhanced sourcing strategies that leverage Gildan’s vertically integrated production model.
By combining Gildan’s manufacturing excellence with HanesBrands’ strong retail distribution network and established consumer brand loyalty, the merger offers a dual advantage: higher production efficiency and broader market penetration. The companies anticipate benefits in:
- Supply Chain Optimization: Consolidating raw material sourcing, transportation routes, and warehousing to reduce overhead.
- Manufacturing Scale: Leveraging Gildan’s low-cost facilities in Central America and the Caribbean alongside Hanes’ global manufacturing footprint.
- Product Development: Sharing design and R&D resources to accelerate innovation and expand product lines in both the wholesale and retail markets.
These efficiencies are not just about trimming expenses; they’re intended to create a stronger, more resilient organization capable of competing at a global scale, responding faster to customer needs, and delivering consistent quality across all channels.
Operational Synergies Set To Deliver $200 Million In Annual Savings
While the Gildan–HanesBrands merger promises scale and efficiency, the path to full integration is not without obstacles. Large acquisitions often face regulatory reviews in multiple jurisdictions, which can delay timelines or impose conditions that alter deal structures. In this case, antitrust considerations may surface given both companies’ substantial presence in the wholesale and retail apparel markets.
Beyond regulatory hurdles, cultural integration between two established organizations poses a significant challenge. Gildan’s highly streamlined, cost-focused operations will need to align with HanesBrands’ more consumer-driven, brand-focused approach. Differences in corporate culture, management styles, and operational priorities can slow decision-making and create friction during the transition period.
Operational complexity is another factor. Merging global supply chains, aligning IT systems, and unifying distribution strategies require meticulous planning and execution. Even with Gildan’s vertically integrated model, the scale of change needed to capture projected efficiencies could temporarily disrupt workflows and delivery schedules.
There’s also the matter of market perception. Competitors may seize the transition period to woo customers or introduce aggressive promotions. Maintaining customer confidence while executing integration will be critical, especially in the promotional products and retail channels, where reliability and speed are paramount.
Finally, economic conditions, such as fluctuations in cotton prices, shifts in consumer spending, and currency exchange volatility, could affect the pace at which the combined company realizes its long-term growth goals. In a highly competitive global apparel market, even the most strategic mergers must navigate these external pressures carefully.
Challenges Ahead For The Gildan–HanesBrands Integration And Market Transition
The Gildan–HanesBrands merger marks a pivotal moment in the global apparel and promotional products industry, one that blends scale, efficiency, and brand power in a way rarely seen. With the potential to double revenues, achieve $200 million in annual cost synergies, and expand reach across both wholesale and retail channels, the deal positions the combined company as a formidable force in basic apparel, activewear, and beyond.
For Gildan, the acquisition is a strategic leap forward, cementing its reputation as a manufacturing powerhouse with a broader portfolio and deeper market penetration. For HanesBrands, it offers renewed stability, operational resources, and access to Gildan’s vertically integrated infrastructure, a platform that could accelerate innovation and sustainability initiatives.
While integration will require careful navigation of cultural, operational, and market challenges, the long-term upside could reshape how the industry approaches supply chain efficiency, brand partnerships, and customer experience. If executed effectively, this union has the potential to set new benchmarks for performance in the branded merchandise space and influence competitive strategies for years to come.
The real question now is not whether the deal will make waves; it already has, but how far those ripples will travel across the industry in the years ahead.
