The Canadian textile group Gildan Activewear Inc. and the US group of Hanesbrand Inc. announced on Wednesday that they had a final merger agreement. This provides that Gildan Hanesbrands takes over.
The transaction implies an equity value of around $ 2.2 billion (2.03 billion euros) and a company value of around 4.4 billion US dollars (4.06 billion euros) for Hanesbrands. The basis for this is the final course of the Gildan stem shares on August 11, 2025.
After completing the transaction, Gildan’s headquarters will continue to be in Montreal, Quebec. The merged company will maintain a strong presence in Winston-Salem, North Carolina.
In addition, Gildan intends to initiate strategic alternatives for Hanesbrands Australia. These include a possible sale or another transaction.
According to the conditions of the merger agreement, which was unanimously approved by the administrative councils of both companies, the shareholders receive 0.102 parent shares from Gildan and $ 0.80 (0.74 euros) in cash for each share from Hanesbrands. The Hanesbrands Board of Directors recommends the shareholder: inside, to vote for the proposed transaction.
Based on the final course of the Gildan and Hanesbrands shares on August 11, the offer implies a value of $ 6.00 (5.54 euros) per Hanesbrands share. This corresponds to a surcharge of about 24 percent compared to the closing course of Hanesbrands that day.
After completing the transaction, the Hanesbrands shareholders will have around 19.9 percent of the Gildan shares on the inside on a non-diluted basis. This gives Hanesbrands shareholders: inside the opportunity to participate in the expected growth opportunities and synergies of the merged company.
The transaction is subject to the consent of the Hanesbrand shareholders: inside and other usual final conditions. This includes official permits and the listing of the Gildan stem shares on the New York Stock Exchange and the Torontoer Stock Exchange. The transaction is expected for the end of 2025 or early 2026.
The purchase price for every Hanesbrands share is about 87 percent composed of shares and 13 percent of cash. The bar content of the acquisition is expected to be around $ 290 million (267 million euros). Gildan assumes that the revolving credit facility, the temporary loans to refinance the temporary loans, the unsafeive bonds and the short-term liabilities of Hanesbrands in the amount of around two billion US dollars (1.84 billion euros).
In connection with the acquisition, Gildan has received promised transaction financing of $ 2.3 billion. This consists of a bridge facility of $ 1.2 billion (1.1 billion euros) and temporary loans of a total of $ 1.1 billion ($ 1.01 billion). The bridge facility serves to finance an expected emission new debt before the acquisition of the acquisition.
Gildan confirmed his sales and profit forecast for the year 2025 and presented a three-year outlook for the period from 2026 to 2028. For net sales, an average annual growth rate in the range of three to five percent is predicted, for the result of special effects per share, an average annual increase in the low 20 percent range is expected. The starting point is the average of the forecast for the adjusted result per share for 2025.
This article was used with digital tools translated.
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