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The
companies put the transaction’s valued at about $4.4 billion
when HanesBrands' debt is included.
Gildan, in addition to its namesake brand, also makes American
Apparel and Peds.
HanesBrands' sales have fallen for three consecutive years and
it hasn't turned an annual profit since 2021.
The North Carolina 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.
“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.
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.
Gildan has been experiencing some upheaval 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.
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.
Gildan said that it plans to conduct a strategic review of
HanesBrands Australia, which could include a sale.
The deal is expected to close later this year or early next
year. It still needs approval from HanesBrands shareholders.
Shares of HanesBrands dropped nearly 4% before the market opened
after spiking 28% Tuesday on rumors of a buyout.
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