Gildan completes HanesBrands acquisition
The companies plan to deliver at least $200 million in run-rate cost synergies.
Gildan Activewear has completed the previously announced acquisition of HanesBrands.
“Today marks the beginning of an exciting new chapter. By welcoming HanesBrands into the Gildan family, we are doubling our scale, combining iconic brands with our world-class, low-cost, vertically integrated platform, and unlocking a powerful engine for innovation and growth. Together, our complementary strengths in activewear and innerwear, across channels and geographies, position us to better serve our customers and deliver sustainable, long-term value for our shareholders”, said Glenn Chamandy, president and chief Executive officer of Gildan.
Chamandy continued, “Our priority now is to execute a seamless, collaborative integration that enables us to fully capture the value of our expanded platform and deliver at least $200 million in run-rate cost synergies, as announced on Aug. 13.”
According to the company, the acquisition creates “a global apparel leader.” A previous release from Gildan said the transaction implies an equity value of approximately $2.2 billion and an enterprise value of approximately $4.4 billion for HanesBrands, based on the closing price of Gildan common stock on Aug. 11.
“This transaction represents a pivotal moment in Gildan’s story,” said Michael Kneeland, chair of the Board of Directors of Gildan. “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.”
