Canadian clothing giant Gildan Activewear has announced its acquisition of Hanes Brands for $2.2 billion, marking one of the most significant deals in the apparel industry this year. The transaction includes a mix of cash and stock, with the total valuation reaching approximately $4.4 billion. Gildan, known for brands such as American Apparel and Goldtoe, stated that the acquisition is part of its strategic plan to expand scale and strengthen its global market leadership in basic and activewear apparel.
Hanes Brands, based in Winston-Salem, North Carolina, has a rich history in American innerwear, dating back to the early 20th century. Recently, however, Hanes Brands has faced business challenges including declining sales and the sale of its Champion brand, prompting a search for new growth opportunities. The merger with Gildan offers Hanes Brands access to a broader global manufacturing network and greater financial stability, positioning the combined entity as a frontrunner in the mass-market basics segment.
Industry analysts note that the deal creates a powerhouse in the global apparel space, combining Gildan’s vertically integrated manufacturing and distribution model with Hanes Brands’ recognized portfolio of household names. While Hanes Brands’ investors saw a sharp stock surge following news of the deal, Gildan’s shares dipped, reflecting market concerns about the purchase price and future performance. Both companies, however, expect substantial growth synergies and expanded market reach from the merger in the years ahead.
“Your donation helps us cover global events, ensuring everyone stays informed.”
(Source: WSJ | CNBC | Market Watch)
