Gildan Activewear agreed to acquire U.S. underwear maker HanesBrands in a cash-and-stock deal that assigns the target an equity value of about $2.2 billion and an enterprise value of roughly $4.4 billion. The agreement, announced Wednesday, is the Canadian company’s largest acquisition and follows a day of market speculation on a potential takeover. Under the terms, HanesBrands shareholders will receive 0.102 Gildan share and 80 cents in cash for each Hanes share, implying consideration of about $6.00 a share—24 percent above HanesBrands’ closing price on 11 August. Upon completion, Hanes investors will hold nearly 20 percent of the enlarged group, which plans to keep Gildan’s headquarters in Montréal while maintaining a substantial presence in Winston-Salem, North Carolina. Gildan has secured roughly $2.3 billion in bridge and term-loan financing to fund the cash portion of the purchase and refinance about $2 billion of HanesBrands’ existing debt. The buyer expects leverage to peak at around 2.6 times adjusted EBITDA and to return to its 1.5-to-2.5-times target range within 12-to-18 months, a timeline during which share repurchases will be paused. Management projects at least $200 million in annual cost synergies within three years by combining manufacturing networks and supply chains, a move it says will immediately add to adjusted earnings per share and lift pro-forma EPS by more than 20 percent once savings are fully realized. Gildan also intends to review strategic options for HanesBrands Australia after closing. The merger caps a tumultuous stretch for both companies: Hanes has grappled with falling sales and heavy borrowings, while Gildan’s board underwent a high-profile overhaul in 2024 partly over strategy disagreements. The transaction requires approval from HanesBrands shareholders and regulators, and is expected to close in late-2025 or early-2026.