Gildan Acquires HanesBrands to Create Global Basic Apparel Company
HanesBrands entered into an agreement with Gildan Activewear to be acquired for $4.4 billion.
The merger is said to bring together each company’s respective strengths, such as Gildan’s manufacturing network and HanesBrands' go-to-market expertise and heritage brand presence in activewear.
The companies said the deal creates a “global basic apparel leader with proven operational expertise to drive significant value creation.” This includes increased product diversification and resilience, more balanced category and channel exposure, and expanded consumer reach.
“Our state-of-the-art, low-cost, vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation,” said Gildan CEO and president Glenn J. Chamandy in a statement.
Gildan expects to generate at least $200 million in annual cost savings within three years by consolidating supply chains, streamlining operations and reducing overhead. Key areas of synergy include manufacturing and logistics, with projected savings of $50 million in 2026, $100 million in 2027 and another $50 million in 2028.
Gildan will also consider the strategic sale or other transaction for HanesBrands Australia.
More About HanesBrands
HanesBrands, founded in 2006, includes a range of undergarment brands, including Hanes, Maidenform, Bali and Bonds. The company employs approximately 48,000 associates across 30 countries.
As part of a multi-year transformation strategy, HanesBrands has focused on streamlining operations, reducing debt and strengthening its core undergarments business. In 2024, the company sold its Champion brand to Authentic Brands Group for up to $1.5 billion, using the proceeds to pay down debt and reinvest in its core business.
In the last several years, the company has also undergone major digital improvements to boost efficiency. Efforts include an expanded partnership with Wipro to enhance product lifecycle management, cybersecurity and intelligent automation. The company has also incorporated AI-enabled tools, such as an internal generative AI system that answers complex supply chain questions.
This builds on ongoing efforts, including supply chain automations, elevated payment architectures, a new ERP and trade promotion strategies, and more.
In early 2025, HanesBrands relocated its headquarters to downtown Winston-Salem, N.C., as part of a broader initiative to encourage innovation and collaboration. The combined company will maintain a strong presence in the area.
Meanwhile, Gildan's headquarters will remain in Montreal.
