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How Will Gildan's Scale Change After HanesBrands' Acquisition?
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Key Takeaways
GIL completes its HanesBrands acquisition, creating a larger global activewear and innerwear player.
The merger blends Gildan's low-cost model with HanesBrands' iconic brands to enhance reach and efficiency.
GIL targets at least $200M in annual cost synergies through manufacturing and supply chain efficiencies.
As part of its expansion strategy, Gildan Activewear Inc. (GIL - Free Report) has completed its acquisition of HanesBrands, as previously announced, marking a major milestone for the apparel industry. By bringing HanesBrands into the fold, Gildan has effectively doubled its scale, creating one of the largest global players in activewear and innerwear. This move significantly broadens the company’s brand portfolio and strengthens its competitiveness across key markets worldwide.
The merger combines Gildan’s well-established, low-cost, vertically integrated manufacturing model with HanesBrands’ powerful lineup of iconic consumer brands. This blend of capabilities is expected to create a strong foundation for product innovation, operational efficiency and improved customer reach across retail, online and wholesale channels. The combined strengths of both organizations are positioned to help Gildan serve consumers and partners more effectively while building long-term, sustainable value.
A major focus of the post-acquisition phase will be executing a smooth and collaborative integration process. Gildan plans to align systems, operations and teams in a way that minimizes disruption while accelerating the benefits of the merger. The integration is not just about cost optimization, but about creating a unified platform capable of faster decision-making, stronger supply chain management and enhanced product development capabilities.
Looking ahead, Gildan expects the expanded company to deliver at least $200 million in annual run-rate cost synergies, as announced in August 2025. These savings are anticipated to come from manufacturing efficiencies, supply chain enhancements and reduced overhead, ultimately strengthening the company’s financial performance. With the acquisition now complete, Gildan enters its next chapter with the scale, brand power and operational advantages needed to drive growth in a competitive global market.
More Insights Into GIL’s Acquisition & Strategy
The deal was structured through a combination of stock and cash, with each HanesBrands shareholder receiving 0.102 Gildan shares and 80 cents in cash per share, subject to tax withholdings. This approach allowed Gildan to integrate HanesBrands without over-leveraging its balance sheet while addressing HanesBrands’ prior debt obligations, which included more than $2 billion in outstanding loans. The repayment of these obligations and the redemption of senior notes effectively resolved one of HanesBrands’ long-standing financial challenges.
Gildan financed the transaction through a $1.1 billion term loan, a $1.2 billion private placement of senior unsecured notes and available cash reserves. The acquisition also led to the delisting of HanesBrands from the NYSE and the reorganization of its corporate structure, with all prior directors and officers resigning as HanesBrands became a wholly owned subsidiary of Gildan.
The acquisition aligns with Gildan’s broader strategy of expanding its global footprint, diversifying its product offerings and strengthening its position in higher-margin apparel segments. By combining Gildan’s low-cost, high-efficiency operations with HanesBrands’ premium brands and established retail relationships, the company is positioned to drive revenue growth, innovation and improved shareholder returns in the coming years.
Ralph Lauren Corporation (RL - Free Report) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for RL’s current fiscal-year sales and earnings indicates growth of 9.5% and 24.9%, respectively, from the year-ago reported figures. Ralph Lauren delivered a trailing four-quarter average earnings surprise of 9.8%.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It carries a Zacks Rank #2 at present. Revolve Group delivered a trailing four-quarter average earnings surprise of 61.7%.
The Zacks Consensus Estimate for RVLV’s current fiscal-year revenues implies growth of 6.8% from the year-ago actuals.
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, produces, procures, markets, distributes and licenses denim, apparel, footwear and accessories. It currently carries a Zacks Rank #2. KTB delivered a trailing four-quarter earnings surprise of 14%, on average.
The Zacks Consensus Estimate for Kontoor Brands’ current financial-year sales and earnings indicates growth of 19.4% and 12.5%, respectively, from the year-ago reported figures.
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How Will Gildan's Scale Change After HanesBrands' Acquisition?
Key Takeaways
As part of its expansion strategy, Gildan Activewear Inc. (GIL - Free Report) has completed its acquisition of HanesBrands, as previously announced, marking a major milestone for the apparel industry. By bringing HanesBrands into the fold, Gildan has effectively doubled its scale, creating one of the largest global players in activewear and innerwear. This move significantly broadens the company’s brand portfolio and strengthens its competitiveness across key markets worldwide.
The merger combines Gildan’s well-established, low-cost, vertically integrated manufacturing model with HanesBrands’ powerful lineup of iconic consumer brands. This blend of capabilities is expected to create a strong foundation for product innovation, operational efficiency and improved customer reach across retail, online and wholesale channels. The combined strengths of both organizations are positioned to help Gildan serve consumers and partners more effectively while building long-term, sustainable value.
A major focus of the post-acquisition phase will be executing a smooth and collaborative integration process. Gildan plans to align systems, operations and teams in a way that minimizes disruption while accelerating the benefits of the merger. The integration is not just about cost optimization, but about creating a unified platform capable of faster decision-making, stronger supply chain management and enhanced product development capabilities.
Looking ahead, Gildan expects the expanded company to deliver at least $200 million in annual run-rate cost synergies, as announced in August 2025. These savings are anticipated to come from manufacturing efficiencies, supply chain enhancements and reduced overhead, ultimately strengthening the company’s financial performance. With the acquisition now complete, Gildan enters its next chapter with the scale, brand power and operational advantages needed to drive growth in a competitive global market.
More Insights Into GIL’s Acquisition & Strategy
The deal was structured through a combination of stock and cash, with each HanesBrands shareholder receiving 0.102 Gildan shares and 80 cents in cash per share, subject to tax withholdings. This approach allowed Gildan to integrate HanesBrands without over-leveraging its balance sheet while addressing HanesBrands’ prior debt obligations, which included more than $2 billion in outstanding loans. The repayment of these obligations and the redemption of senior notes effectively resolved one of HanesBrands’ long-standing financial challenges.
Gildan financed the transaction through a $1.1 billion term loan, a $1.2 billion private placement of senior unsecured notes and available cash reserves. The acquisition also led to the delisting of HanesBrands from the NYSE and the reorganization of its corporate structure, with all prior directors and officers resigning as HanesBrands became a wholly owned subsidiary of Gildan.
The acquisition aligns with Gildan’s broader strategy of expanding its global footprint, diversifying its product offerings and strengthening its position in higher-margin apparel segments. By combining Gildan’s low-cost, high-efficiency operations with HanesBrands’ premium brands and established retail relationships, the company is positioned to drive revenue growth, innovation and improved shareholder returns in the coming years.
Shares of this Zacks Rank #1 (Strong Buy) company have climbed 23.7% in the past six months, outperforming the industry’s decline of 17.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GIL Stock's Price Performance
Image Source: Zacks Investment Research
Other Key Picks
Ralph Lauren Corporation (RL - Free Report) designs, markets and distributes lifestyle products in North America, Europe, Asia and internationally. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for RL’s current fiscal-year sales and earnings indicates growth of 9.5% and 24.9%, respectively, from the year-ago reported figures. Ralph Lauren delivered a trailing four-quarter average earnings surprise of 9.8%.
Revolve Group, Inc. (RVLV - Free Report) operates as an online fashion retailer for millennial and Generation Z consumers in the United States and internationally. It carries a Zacks Rank #2 at present. Revolve Group delivered a trailing four-quarter average earnings surprise of 61.7%.
The Zacks Consensus Estimate for RVLV’s current fiscal-year revenues implies growth of 6.8% from the year-ago actuals.
Kontoor Brands, Inc. (KTB - Free Report) , a lifestyle apparel company, designs, produces, procures, markets, distributes and licenses denim, apparel, footwear and accessories. It currently carries a Zacks Rank #2. KTB delivered a trailing four-quarter earnings surprise of 14%, on average.
The Zacks Consensus Estimate for Kontoor Brands’ current financial-year sales and earnings indicates growth of 19.4% and 12.5%, respectively, from the year-ago reported figures.