Today, Canada’s Gildan Activewear announced it will acquire HanesBrands for $2.2 billion, “creating a global basic apparel leader, with access to iconic innerwear brands and a further strengthened low-cost vertically integrated manufacturing network,” according to the companies.
Under the terms of the deal, HanesBrands shareholders will receive 0.102 Gildan common shares and 80 cents in cash for each HanesBrands share. The offer values each HanesBrands share at $6, which is about a 24% premium over the company’s closing price on August 11.
Glenn J. Chamandy, President and Chief Executive Officer of Gildan told investors: “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. We are excited for the next stage of growth and remain focused on supporting our customers and continuing to drive long term shareholder value.”
Steve Bratspies, CEO of HanesBrands commented, “This transaction represents a powerful alignment of HanesBrands’ and Gildan’s shared commitment to quality, innovation, and excellence. We have great respect for Gildan’s manufacturing strength and long track record of success. We look forward to expanding upon HanesBrands’ portfolio of leading innerwear brands and go-to-market expertise and opening new doors for growth and impact as part of Gildan… Today marks the beginning of an exciting journey ahead as part of Gildan and I’m particularly pleased that Gildan intends to maintain HanesBrands’ strong presence in Winston-Salem.”
Michael Kneeland, Chair of the Board of Directors of Gildan stated, “Hanes is a distinguished brand with a proud legacy, and by joining forces with HanesBrands, we are forging an exceptional organization built on the strengths of both companies. Leveraging best practices and the exceptional teams from each side, we are poised to deliver outstanding value to our customers and shareholders. With the finest talent in the industry, we have an extraordinary opportunity ahead to shape the future together.”
The companies stated that after the transactions close, Gildan’s headquarters will remain in Montreal, while the merged entity will continue to have a strong presence in Winston-Salem, N.C.
By CEO NA Editorial Staff
