A group of four firms are advising Montréal-based Gildan as it acquires US-based HanesBrands for an equity value of $2.2bn and an enterprise value of $4.4bn.
Sullivan & Cromwell (S&C) and Stikeman Elliott are serving as Gildan’s legal advisors, while Jones Day and Blake Cassels & Graydon are counselling HanesBrands’ in the mega-merger transaction.
The deal, unanimously approved by both boards, will create one of the world’s largest basic apparel companies. The transaction marks Gildan’s largest deal to date.
The S&C team advising Gildan includes partners Brian Hamilton, Matthew Goodman, Davis Wang, Ha Jin (Tessa) Lee, Neal McKnight, Regina Readling, Steve Holley and Juan Rodriguez. For more than two decades, S&C has advised Gildan, including on its acquisitions of American Apparel, Alstyle Apparel, Anvil Holdings, Comfort Colors, Gold Toe Moretz and Phoenix Sanford.
The Stikeman Elliot team advising Gildan includes partners Robert Carelli, Olivier Godbout and associate Jules Dumas-Richard.
The Blakes team acting for HanesBrands is led by partner Michael Gans, along with partners Jacob Gofman, Navin Joneja, Fraser Malcolm and Paul Stepak, while the Jones Day team advising HanesBrands is led by partners Joel May and Darcy White.
Gildan’s president and CEO Glenn J Chamandy, said: “Today is an historic moment in Gildan’s journey as we look to join forces with HanesBrands. We are extremely pleased to welcome the HanesBrands’ team to the Gildan family.”
Under the terms of the agreement, HanesBrands shareholders will receive a combination of Gildan shares and $0.80 in cash for each HanesBrands share, representing a 24% premium over HanesBrands’ share price before the deal was announced. Upon closing, HanesBrands shareholders will own approximately 19.9% of the combined company.
The combined company will offer a broader range of products, including well-known brands in both activewear and innerwear. Gildan expects the deal to generate at least $200m in annual cost savings within three years, primarily by streamlining manufacturing and operations.
The merger is expected to close in late 2025 or early 2026. Gildan will maintain its headquarters in Montréal, Quebec, and HanesBrands will continue to have a presence in Winston-Salem, North Carolina.
The announcement of the HanesBrand deal is the latest chapter in the corporate saga of Chamandy and Gildan. In late 2023, Gildan’s board ousted longtime CEO Chamandy, citing succession issues, replacing him with Vince Tyra. That move sparked backlash from major shareholders and activist investors, including Browning West. After a proxy battle and mounting pressure, the entire board resigned in May 2024 and Chamandy was reinstated as CEO.
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