Gildan Completes Hanesbrands Acquisition, Focus Shifts to Integration

Hanesbrands US4103451021

The global apparel landscape has consolidated with the finalization of Gildan Activewear's takeover of Hanesbrands. As of December 1, 2025, Hanesbrands ceased to be a publicly traded entity and now operates as a wholly-owned subsidiary of Gildan, concluding a major deal in the sector. The market's attention now turns to how the combined entity will execute its ambitious integration plan.

• Deal Closure Date: December 1, 2025
• Stock Market Status: Delisted from the New York Stock Exchange
• Shareholder Compensation: 0.102 Gildan shares plus $0.80 in cash per Hanesbrands share
• Synergy Target: $200 million annually (to be realized within three years)
• Debt Action: Repayment of the 9.000% senior notes due 2031 completed

This transaction, initially announced in August 2025, was finalized at year's end. The merger creates a powerhouse with a combined network of over 40 manufacturing facilities worldwide. A primary strategic driver is the pursuit of greater vertical integration and economies of scale within the competitive apparel market.

Concurrently with the operational merger, Gildan has moved swiftly to streamline the capital structure of the new organization. On December 11, the company completed the early redemption of Hanesbrands' high-yield 9.000% senior notes, which were scheduled to mature in 2031. This repayment, funded through the parent company's new credit facilities and bond issuances, is designed to significantly reduce interest expenses and simplify the consolidated balance sheet.

The Path to $200 Million in Synergies

The delisting of Hanesbrands stock immediately triggered the start of the operational integration process. Gildan's management is undertaking a comprehensive restructuring of production and distribution networks across the expanded company. A core objective is the efficient absorption of iconic Hanesbrands labels—including Hanes, Bonds, and Maidenform—into Gildan's existing brand portfolio.

Central to this effort is the target of achieving at least $200 million in annual cost synergies within a three-year timeframe. Management plans to reach this goal primarily by optimizing the vertically integrated manufacturing footprint spanning North and Central America, as well as Asia. Streamlining logistics and supply chain operations across continents will be a critical component of this efficiency drive.

Leadership Changes and Future Portfolio Review

The consolidation has also precipitated changes in executive leadership. Steve Bratspies, the former Hanesbrands CEO who steered the company through its final years as an independent entity, has transitioned to the retail sector. An announcement on January 22 confirmed that Bratspies will join the Board of Directors of Target Corporation effective April 1. His board committee assignments will include Audit & Risk and Infrastructure & Finance.

Looking ahead, Gildan is evaluating further strategic options for certain international assets, particularly those in Australia and the Asia-Pacific region. Potential divestitures of these business units in the coming months could allow the enlarged group to sharpen its focus on core operations and markets following this transformative acquisition.