Gildan Acquiring Hanes

Apparel on the Gildan website.

Gildan Activewear is acquiring HanesBrands, valuing the latter company at an enterprise value of “approximately $4.4 billion,” based “on the closing price of Gildan common stock on August 11, 2025.”

Gildan, which reported a net income of $401 million on sales of $3.271 billion in 2024, has stated that activewear represented 87% of total sales that year, while hosiery and underwear accounted for just 13% of total sales. Hanes produces a “broad range of basics and innerwear,” and reported a loss of $320.4 million on sales of $3.507 billion in 2024.  

Gildan CEO Glenn J. Chamandy noted that “with this transaction, our revenues will double and we achieve a scale that distinctly sets us apart. The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage “Hanes” brand presence in activewear across channels, while enhancing Gildan’s retail reach for its portfolio of brands. Further, our state of the art low-cost vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation.”

The announcement argued that “the two businesses are ideally matched to unlock value, bringing together Gildan’s leadership in activewear with HanesBrands’ leading innerwear retail presence and expertise. The combination will enhance go-to-market capabilities and continued growth in all channels, by accelerating Gildan’s retail penetration with its portfolio of brands while supporting the iconic “Hanes” brand growth in activewear in the retail channel.”

It added that the combination will “enhance Gildan’s position in basic apparel as one of the largest global apparel players by number of units sold, with strong innovation from yarn spinning to end product” and “its best-in-class low-cost manufacturing structure and operational expertise.”

It concluded that “following transaction close, Gildan’s headquarters will continue to be located in Montréal, Québec and the combined company will maintain a strong presence in Winston-Salem, North Carolina,” where Hanes has long been based. “In addition, Gildan intends to initiate a review of strategic alternatives for HanesBrands Australia, which could include a sale or other transaction.” Gildan’s brands include American Apparel, Comfort Colors, Goldtoe and Peds,