Canadian company Gildan buying Hanes for $2.2 billion

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FILE - Hanes logo (Photo by Riccardo Savi/Getty Images for Hanes)

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Canada-based Gildan Activewear will purchase HanesBrands in a $2.2 billion deal that will transfer ownership of popular name brands like Hanes and Maidenform. 

Gildan, in addition to its namesake brand, also makes American Apparel and Peds.

Gildan buying Hanes

What they're saying:

"As part of Gildan, HanesBrands will benefit from an even stronger financial and operational foundation that will provide new growth opportunities – helping to power further innovation, a broader product offering and greater reach across channels and geographies," HanesBrands Chairman Bill Simon said in a statement Wednesday.

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By the numbers:

If you include HanesBrands’ debts, the sale is valued at about $4.4 billion, the companies said. 

HanesBrands shareholders will receive 0.102 common shares of Gildan and 80 cents in cash for each share of HanesBrands common stock. They will own about 19.9% of Gildan stock once the deal closes.

Shares of HanesBrands dropped nearly 4% before the market opened after spiking 28% Tuesday on rumors of a buyout.

HanesBrands is struggling

Dig deeper:

North Carolina-based HanesBrands' sales have fallen for three consecutive years and it hasn't turned an annual profit since 2021.

The company sold its Champion brand last year to Authentic Brands Group for more than $1 billion. In February, Target announced a multiyear strategic partnership with Champion, with products from the brand rolling out in the retailer’s store and on its website starting this month.

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Gildan has been struggling as well. In May 2024 its entire board resigned and appointed the nominees of activist investor Browning West as their replacements. CEO Vince Tyra also stepped down.

When will the sale close? 

What's next:

The deal is expected to close later this year or early next year. It still needs approval from HanesBrands shareholders.

Local perspective:

Gildan’s headquarters will remain in Montréal after the transaction is complete. The combined company will maintain a strong presence in Winston-Salem, North Carolina, where HanesBrands is located.