In a landmark deal set to reshape the global apparel industry, Gildan Activewear Inc. and HanesBrands Inc. have agreed to merge, forming one of the largest basic apparel companies in the world. The agreement, announced August 13, 2025, combines two industry leaders with complementary strengths, aiming to expand market reach, enhance manufacturing efficiency, and unlock significant cost savings.
The transaction values HanesBrands at approximately $2.2 billion in equity and $4.4 billion in enterprise value. Upon completion, HanesBrands shareholders will own about 19.9% of the combined company. The deal is expected to close in late 2025 or early 2026, pending shareholder and regulatory approvals.
The merger will give Gildan access to HanesBrands’ iconic innerwear labels such as Hanes, Playtex, and Maidenform, while strengthening its retail penetration for its own activewear brands. The companies plan to leverage their combined strengths to expand sales across multiple channels and geographies.
Gildan’s vertically integrated, low-cost manufacturing network is a core advantage in the deal. By combining operations, the new entity expects to realize at least $200 million in annual cost synergies within three years—$50 million in 2026, $100 million in 2027, and another $50 million in 2028. These savings will come from streamlining supply chains, consolidating production, and reducing overlapping expenses.
From day one, the transaction is expected to boost Gildan’s adjusted diluted earnings per share, with projected growth of over 20% once full synergies are achieved. The combined entity’s adjusted EBITDA would have been approximately $1.6 billion for the 12 months ending June 29, 2025.
With greater scale, a broader product range, and enhanced brand strength, the merged company is positioned to better withstand seasonal and economic fluctuations. By blending HanesBrands’ strong retail presence with Gildan’s manufacturing efficiency, the partnership aims to offer greater value to both customers and shareholders.
The combined company will remain headquartered in Montréal, Québec, while maintaining a strong presence in Winston-Salem, North Carolina, preserving HanesBrands’ historical roots. Additionally, Gildan plans to review strategic alternatives for HanesBrands Australia, which could include a sale or other restructuring.
Looking ahead, Gildan projects net sales growth of 3–5% annually from 2026 to 2028, with capital expenditures of 3–4% of sales to support growth and integration. The company intends to resume share buybacks once its leverage ratio returns to target levels.
If successful, the merger will create a dominant player in the basic apparel space, offering a more diversified product portfolio, expanded global reach, and a more resilient supply chain. For both brands, this union marks a significant step toward shaping the future of affordable, high-quality apparel worldwide.
