Gildan Activewear to acquire HanesBrands in US$4.4B apparel mega-merger

The merger is expected to close by early 2026, pending regulatory and shareholder approvals. Gildan will maintain its headquarters in Montréal, Quebec, and HanesBrands will continue to have a strong presence in Winston-Salem, North Carolina.

The combined company will offer a broader range of products, including well-known brands in both activewear and innerwear. Gildan expects the deal to generate at least US$200 million in annual cost savings within three years, primarily by streamlining manufacturing and operations.

“With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” said Gildan president and CEO Glenn J. Chamandy in a press release. “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. Further, our state of the art low-cost vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation.”

HanesBrands CEO Steve Bratspies added, “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 go-to-market expertise and opening new doors for growth and impact as part of Gildan.”

To finance the acquisition and refinance HanesBrands’ existing debt, Gildan has secured US$2.3 billion in committed financing. The company has stated it will focus on reducing its debt after the deal closes.

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