Canada’s Gildan Activewear Buys Hanesbrands In $4.4 Billion Deal

Aug 13, 2025 - 14:00
Canada’s Gildan Activewear Buys Hanesbrands In $4.4 Billion Deal

U.S. underwear maker Hanesbrands (HBI) has agreed to be taken over by Canada’s Gildan Activewear (GIL) in a cash and stock deal valued at $4.4 billion U.S.

Shares of Hanesbrands surged as much as 40% when news of the deal first emerged in the media.

The takeover ends a turbulent chapter for Hanesbrands, marked by years of underinvestment and heavy debt loads after it was spun off from conglomerate Sara Lee in 2006.

Gildan Activewear says it will pay $6 U.S. per share for Hanesbrands, a 24% premium to the company’s share price on Aug. 11 this year, and implying an equity value of $2.2 billion U.S.

The purchase of Hanesbrands is expected to double Montreal-based Gildan Activewear’s revenues and enhance its market position in the undergarment category.

Gildan Activewear’s sales have plummeted over the past three years amid stiff competition in the athleisure market and weakening consumer demand.

The acquisition of Hanesbrands is expected to close at the end of this year or in early 2026.

HBI stock has declined 60% over the past five years, while GIL stock has risen 150% over the same time period.

Shares of Gildan Activewear are currently trading at $49.12 U.S. in New York.