Gildan Activewear (PPAI 250187, Platinum) will acquire Hanesbrands, which operates in the promotional products industry as Hanes (PPAI 191138, Gold), for $2.2 billion, the companies announced on Wednesday.
- Gildan is PPAI 100’s No. 7 supplier.
- Hanes is PPAI 100’s No. 57 supplier.
Glenn J. Chamandy, president and CEO of Gildan, said the transaction will double revenues and allow both companies to expand their portfolios beyond activewear and basic apparel. Including debt, the transaction values Hanesbrands at about $4.4 billion, The Wall Street Journal reported.
“Further, our state-of-the-art, low-cost, vertically integrated platform will be utilized to enhance efficiencies and drive additional innovation,” Chamandy says. “We’re excited for the next stage of growth and remain focused on supporting our customers and continuing to drive long term shareholder value.”
Glenn J. Chamandy
President/CEO, Gildan
Home Base
Gildan says that the acquisition will immediately add to its adjusted per-share earnings, and that the deal is expected to result in at least $200 million of annual run-rate cost synergies within three years of closing.
- Gildan added that it intends to initiate a review of strategic alternatives for Hanesbrands Australia, which could include a sale or other transaction.
Following the close of the deal, which is expected in late 2025 or early 2026, Gildan’s headquarters will continue to be located in Montreal and the combined company will maintain a strong presence in Winston-Salem, North Carolina, according to the press release.
“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,” says Bill Simon, chairman of Hanesbrands’ board of directors. “We’re confident that this transaction and the next chapter with Gildan is the right next step for HanesBrands and will honor and build on its long history for the benefit of all our stakeholders.”
Bill Simon
Chairman, Hanesbrands
Rocky Road
Hanesbrands suffered a $95.6 million dollar loss in 2023 and then sold its Champion brand to Authentic Brands Group in 2024. The sale was completed last October.
It has also been a tumultuous couple years for Gildan, which has dealt with internal strife that’s taken various shapes and included numerous sagas. Most recently, former board directors sued the Montreal-based apparel supplier for allegedly failing to pay them deferred compensation following their mass resignations last year.
Despite the trials and tribulations that both firms have experienced in recent years, the acquisition represents a massive merging of two of the most well-known apparel brands in the branded merchandise industry.
Common Acquaintance
Furthermore, the firms share a common acquaintance in promo, having inked exclusive partnerships with S&S Activewear, PPAI 100’s No. 2 supplier.
- Just last week, Gildan announced an agreement that grants exclusive wholesale distribution rights of its American Apparel brand in the U.S. market to S&S Activewear.
- Additionally, in Canadian markets, S&S Activewear will now be the exclusive wholesale distributor of Gildan’s portfolio of brands, including Gildan, Comfort Colors, American Apparel and Champion.
- Only two months earlier, HanesBrands announced an agreement that made S&S the exclusive supplier of the Hanes brand in the North American printwear channel.
Frank Myers, CEO of S&S Activewear, weighed in on Gildan’s acquisition of Hanes immediately following the announcement.
Frank Myers
CEO, S&S Activewear
“This combination brings together two companies that share our deep commitment to customers, backed by highly reliable supply chains and a strong focus on sustainability, quality and product innovation,” Myers told PPAI Media. “Together, we’re confident it will create new opportunities for the market and enable us to drive the evolving needs of our industry.”
Toby Whitmoyer, chief commercial officer of S&S Activewear, added, “Gildan’s manufacturing excellence and Hanes’ retail brand power make for a compelling combination – one that will bring fresh ideas, enhanced products and new opportunities for growth.”
