Gildan Activewear will acquire U.S. undergarments maker Hanesbrands for $2.2 billion in cash and stock, paying about $6 per share—a 24% premium.

The deal merges Hanesbrands’ strong retail brands, including Hanes, Maidenform, and Playtex, with Gildan’s global wholesale operations.

Analysts say Gildan’s low-cost manufacturing could improve efficiency.

The acquisition follows years of challenges for Hanesbrands, including declining sales and heavy debt, though recent cost-cutting improved margins, CNBC has reported.

The deal is expected to close in late 2025 or early 2026 and should boost adjusted profit per share.