Gildan Activewear, headquartered in Montreal, Canada, is close to acquiring Hanesbrands in a potential $5 billion deal that includes debt, sources told the Financial Times. The talks are at an advanced stage, and a deal could be agreed by the end of the week, but sources cautioned that an acquisition may not be finalized.
Shares of Hanesbrands, with its headquarters in Winston Salem, NC, were valued at $1.71 billion as of Monday’s close, are up about 40 percent in pre-market trading. Last week, HanesBrands raised its outlook for the year as its transformation efforts helped drive higher margins and operating efficiencies. On an organic basis, sales were flat at $991 million.
Gildan, which had a market capitalization of approximately C$10 billion ($7.62 billion) at Monday’s close, is down about 6 percent in pre-market trading.
HanesBrands manufactures apparel basics, including men’s, women’s, and kids’ underwear and socks, as well as intimate apparel (bras and shapewear), T-shirts, fleece, sports bras, and thermals. Brands include Hanes, Bonds, Bali, Maidenform, Playtex, Bras N Things, Berlei, Wonderbra, Zorba, JMS/Just My Size, and Comfortwash. The company also makes Polo Ralph Lauren underwear under a license. Sales for 2024 were $3.51 billion.
In 2024, Hanesbrands sold the Champion business to Authentic Brands Group in a $1.2 billion deal, as the company looked to streamline its business and focus on its innerwear segment. The deal included its fan apparel business, including Champion Teamwear, Gear for Sports and Knights Apparel.
In February, HanesBrands announced that Steve Bratspies would depart as CEO at the end of 2025, or upon the appointment of his successor.
Montreal-based Gildan recently reaffirmed its full-year 2025 guidance after reporting adjusted earnings grew 17 percent in the second quarter. Margins improved due to lower raw material and manufacturing costs, as well as favorable pricing. Sales rose 6.5 percent to $918.5 million, as a 12 percent gain in Activewear offset declines in hosiery and underwear.
Gildan manufactures activewear, underwear, and socks, sold to a broad range of customers, including wholesale distributors, screen printers and embellishers, as well as retailers. Its brands include Gildan, American Apparel, Comfort Colors, Goldtoe, and Peds. It sells Champion to the printwear channel as part of a license. Gildan’s sales were $3.27 billion in 2024.
In May 2024, Glenn Chamandy, who founded Gildan with his brother Greg in 1984, was reinstated as CEO after being ousted in a lengthy proxy battle.
Image courtesy Gildan Activewear
