Gildan Activewear Inc. agreed to buy US underwear maker Hanesbrands Inc. for about 2.2 billion dollars in cash and stock, in its largest ever acquisition.
Hanesbrands specialises in men’s and women’s inner wear – Maidenform
Canada-based Gildan is offering Hanesbrands holders roughly 6 dollars a share, based on the companies’ closing prices on Aug. 11, according to a statement Wednesday. Including debt, the deal values Hanesbrands at about 4.4 billion dollars.
The transaction targets synergies at least 200 million dollars within three years, according to the statement, and be at least 20% accretive to Gildan’s earnings per share.
Shares in Hanesbrands slid 7.4% in premarket trading, after gaining 28% on Tuesday following reports on the deal.
