07:58 AM EDT, 08/13/2025 (MT Newswires) -- Gildan Activewear ( GIL ) is slightly lower in U.S. pre-market trade after announcing its acquisition of HanesBrands in a US$2.2 billion cash and share deal.

HanesBrands shareholders will receive 0.102 share of Gildan and US$0.80 cash per share. The offer implies a value of US$6 per Hanesbrands share, based on Gildan's closing share price on Aug. 11. The transaction is expected to be immediately accretive to Gildan's adjusted earnings per share.

Upon closing, HanesBrands shareholders will own 19.9% of Gildan shares on a non-diluted basis. Gildan has also identified at least US$200 million in expected annual run-rate cost synergies across the supply chain, operations and SG&A that it expects to realize within three years, a statement said.

Following transaction close, expected late this year or early 2026, Gildan's headquarters will continue to be in Montreal, and the combined company will maintain a strong presence in Winston-Salem, North Carolina. Gildan also intends to initiate a review of strategic alternatives for HanesBrands Australia, which could include a sale or other transaction.

Gildan reaffirmed its 2025 revenue growth forecast of mid-single digits and adjusted diluted EPS guidance of between US$3.40 - US$3.56.

It also provided a three-year outlook for 2026-2028, guiding to net sales growth at a compound annual growth rate (CAGR) in the 3%-5% range and adjusted diluted EPS CAGR in the low 20% range.

"With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart. The combination with HanesBrands strengthens our positioning with an opportunity to expand the heritage "Hanes" brand presence in activewear across channels, while enhancing Gildan's retail reach for its portfolio of brands," said Gildan Chief Executive Glenn Chamandy.

Gildan shares are down US$0.30 to US$48.380 in New York trade.