Gildan Activewear (GIL) M&A Announcement summary

Deal rationale and strategic fit

• The combination creates a global basic apparel leader, leveraging complementary strengths in activewear and innerwear, and expands reach across channels and geographies.

• Enhanced diversification and resiliency through a broader product portfolio, balanced channel exposure, and reduced customer concentration and seasonal risk.

• Strengthened go-to-market and retail capabilities, with iconic brands and established retail relationships.

• Enhanced global, low-cost, vertically integrated manufacturing footprint, supporting innovation and supply chain efficiencies.

• Headquarters will remain in Montréal with a strong presence in Winston-Salem; Australia business under strategic review.

Financial terms and conditions

• HanesBrands shareholders receive 0.102 Gildan shares and $0.80 in cash per share, implying a $6.00 per share value and a 24% premium.

• Total enterprise value is $4.4 billion, with an EV/EBITDA multiple of 8.9x (6.3x including $200 million synergies).

• HanesBrands shareholders will own about 19.9% of the combined entity post-closing.

• Transaction consideration is approximately 87% stock and 13% cash; cash portion totals $290 million.

• Gildan has secured $2.3 billion in committed financing and will refinance HanesBrands' $2 billion in debt.

Synergies and expected cost savings

• At least $200 million in annual run-rate cost synergies expected within three years: $50 million in 2026, $100 million in 2027, $50 million in 2028.

• Synergies stem from manufacturing optimization, SG&A reductions, logistics, IT, and leveraging available capacity.

• One-time costs to capture synergies estimated at $200 million.

• No synergies are attributed to the Australia business, which is under strategic review for potential divestiture.

• Pro forma adjusted EBITDA for the combined business would have been $1.6 billion for the trailing twelve months ended June 29, 2025.