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HanesBrands (HBI) investor relations material
HanesBrands M&A Announcement summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Deal rationale and strategic fit
The merger creates a global leader in basic apparel, combining iconic brands, vertically integrated manufacturing, and complementary product categories and channels.
The combined entity will double revenues to $6.9 billion, expand market reach, and become one of the largest global apparel players by units sold.
Enhanced diversification, resiliency, and balanced exposure across categories and channels, broadening consumer reach and reducing seasonality risk.
Strengthened go-to-market and retail capabilities, leveraging both companies' retail presence and operational expertise.
The Australia business will undergo a strategic review post-closing, with minimal synergy impact.
Financial terms and conditions
HanesBrands shareholders receive 0.102 Gildan shares and $0.80 in cash per share, valuing HanesBrands at $6 per share and a 24% premium.
Total enterprise value is $4.4 billion, with an equity value of $2.2 billion for HanesBrands.
Consideration is 87% stock and 13% cash, with a $290 million cash outlay and $2.3 billion in committed financing secured.
HanesBrands shareholders will own about 19.9% of the combined company.
Gildan will refinance $2 billion of HanesBrands' debt as part of the transaction.
Synergies and expected cost savings
At least $200 million in annual run-rate cost synergies are targeted within three years: $50 million in 2026, $100 million in 2027, and $50 million in 2028.
Synergies will come from manufacturing optimization, SG&A reductions, logistics, IT, and leveraging operational playbooks.
No synergies are attributed to the Australia business, which is under strategic review.
One-time costs to capture synergies are estimated at $200 million.
Pro forma adjusted EBITDA margin is projected at 23%, with $1.6 billion EBITDA for the trailing twelve months ended June 29, 2025.
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Frequently asked questions
Hanesbrands
Hanesbrands Inc. is an American clothing company selling its products globally. The company owns and operates several well-known clothing brands such as Hanes, Champion, Playtex, and several other notable names within the sector. Through its different brands, the company sells apparel aimed at a wide customer base, including men, women, and children, but with a clear focus on staples and comfortable clothing. The company is headquartered in Winston-Salem, North Carolina and its shares are traded on the NYSE
Hosiery and a Spin-Off
Founded in 1901 by John Wesley Hanes in Winston-Salem, North Carolina, the company initially focused on producing high-quality hosiery. The company slowly but surely grew over the decades, and soon came to produce a wide array of clothing with everything from underwear, staples like T-shirts and sweatshirts, activewear, and more.
The modern structure of Hanesbrands was established in 2006 when the company became an independent entity following its spin-off from the Sara Lee Corporation. This strategic move was a result of Sara Lee's decision to focus on its food, beverage, and household products segments.
The Apparel
While many associate the name 'Hanes' with basics like underwear and t-shirts, Hanesbrands' portfolio goes well beyond that. The company produces everyday basic apparel which includes innerwear, outerwear, hosiery, and activewear. Its products span a range of categories, from bras and panties to socks, sweatshirts, and athletic apparel. With a collection of well-known brands under its umbrella, such as Champion, Playtex, Bali, and Maidenform, the company caters to various consumer groups. From sports enthusiasts looking for performance gear to individuals seeking comfortable daily wear, Hanesbrands will more than likely have something that a consumer would find appealing.
Reaching Consumers
Hanesbrands Inc. uses several channels to sell its products to consumers. The company operates online stores, offering a convenient platform for customers to browse and purchase directly from the brand's digital catalog. Hanesbrands also owns and operates its own brick-and-mortar locations, as well as selling its merchandise through partnerships with other retailers. Some of the closest competitors to Hanesbrands are Fruit of the Loom (owned by Warren Buffets Berkshire Hathaway) and Gildan.
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