Gildan Activewear Inc. (GIL) has agreed to acquire US apparel company HanesBrands Inc. (HBI) in a transaction valued at approximately US $ 4.4 billion. Expected to close between late 2025 and early 2026, the deal will create a global leader in basic apparel, combining Gildan’s strength in activewear with HanesBrands’ dominant position in US innerwear.
The transaction, based on Gildan’s closing share price on 11th August 2025, will be financed in part through US $ 2.3 billion in committed funding. The combined company anticipates at least US $ 200 million in annual cost synergies by 2028, while doubling Gildan’s revenues and significantly expanding its market share. Analysts estimate the merger could establish a 40% share of the basic apparel segment, reshaping industry competition.
Challenges remain, particularly HanesBrands’ US $ 3.1 billion debt burden and the need for smooth post-merger integration following its recent divestiture of Champion. Gildan CEO Glenn Chamandy has highlighted operational streamlining and scale efficiencies as top priorities.
If executed well, the merger positions the combined entity to dominate the US $ 200 billion global basic apparel market, with enhanced diversification across innerwear, activewear, and value basics.
