(Montreal) Gildan sports clothing actions climbed by more than 10 % at the start of the session after the announcement of Hanesbrands’s acquisition for 2.2 billion US.
The Montreal company Gildan says that this transaction would allow it to gain in size and develop in a very competitive sector.
“This day marks a historic moment in the course of Gildan,” said the president and chief executive officer of Gildan, Glenn Chamandy, in a press release.
“Thanks to this operation, our operating products will double and we reach a scale which allows us to distinguish ourselves clearly. »»
The company resulting from the merger will take advantage of the presence of Hanes in the retail trade and the expertise of Gildan in the field of sports clothes to extend the scope of the two companies, according to Mr. Chamandy.
The company maintains that synergies should save saving of 200 million US over three years.
The cash and shares agreement provides that Gildan issues the shareholders of Hanesbrands 0.102 Gildan action and 80 cents US in cash for each Hanes action, the issue of shares representing 87 % of the value of the operation.
The conditions fix the net value of Hanesbrands to 2.2 billion US, while Gildan will also resume around 2.0 billion US of hanesbrands debts.
Gildan’s shares experienced a downward trend when the news in the agreement was announced on Tuesday, but they increased by $ 8.30, or 12.2 %, reaching $ 75.93 on the Toronto Stock Exchange on Wednesday morning.
The actions climbed despite the announcement by Gildan from the suspension of his action buy -back program until his debt ratio improves.
The president of Hanesbrands, Bill Simon, stresses that the agreement brings a significant and certain value to the shareholders of the company, both thanks to immediate liquidity and the growth potential of the merged company.
“Within Gildan, Hanesbrands will take advantage of an even more solid financial and operational base which will present new opportunities for growth, which will help him stimulate innovation, expand his range of products and extend his channels and his presence in different regions,” said Simon in a press release.
“We are convinced that this operation and the new chapter with Gildan are the next step for Hanesbrands. »»
The transaction is subject to the approval of the shareholders of Hanesbrands and to the other usual closing conditions. The fence is scheduled for the end of 2025 or the beginning of 2026.
Hanesbrands shareholders will hold about 19.9 % of Gildan’s shares, before dilution, once the transaction has been concluded.
The transaction would include examining a potential sale or other strategic spare solutions for Hanesbrands Australia.
