Canada’s Gildan Activewear Inc. is in advanced talks to buy US underwear maker Hanesbrands Inc., the FT reported, citing people familiar with the matter.
Hanesbrands specialises in inner wear – Bonds
The transaction could value Hanesbrands at nearly $5 billion including debt and it may be agreed by the end of the week, the people told the FT, adding negotiations are not finalised and may still collapse. The transaction could be Gildan’s largest deal so far, according to data compiled by Bloomberg.
Gildan shares are up almost 4% this year, giving it a C$10.5 billion ($7.62 billion) market value. Hanesbrands shares lost more than 40% in the period, taking its market value to $1.7 billion. The US company had about $2.5 billion in debt as of June, the FT said.
Hanesbrands posted better-than-expected results in the second quarter while lifting its forecast for the year as it now has visibility over costs, it said last week. The company has been weighed down by weak sales and inventory cuts at retail partners, as well as higher costs amid rising US tariffs, according to the FT.
Gildan and Hanesbrands didn’t immediately respond to requests for comment from the FT.
