The Quebec company Gildan Activewear is about to conclude an agreement for the acquisition of the Hanesbrands multinational, reports by the Financial Timesfrom London.
This acquisition could enhance the American manufacturer of underwear at nearly $ 5 billion, including debt, according to sources close to the file.
The British daily recalls that Hunesbrands has suffered from the weakness of its sales and the reduction of stocks from its retail partners. President Donald Trump’s customs policies have also resulted in an increase in his costs. Since the beginning of the year, its action has dropped by 40%.
Glenn Chamandy, PDG de Gildan.
JMTL
On the other hand, the course of the action of Gildan, led by Glenn Chamandy, is negotiated at record levels and the company recorded record sales and profits in the second quarter of this year.
Negotiations are at an advanced stage and an acquisition could be concluded by the end of the week, but negotiations are not finalized and could still fail, specify sources of the daily.
Hanesbrands had a market capitalization of $ 1.7 billion at the end of Monday. Its debt totaled around $ 2.5 billion in June.
The standoff between Hanesbrands and the activist investor Barington Capital led to the addition of three additional independent directors to the board of directors at the end of 2023.
The following year, to reduce its debt, Hanesbrands sold the Champion clothing brand at Authentic Brands for US $ 1.2 billion, leaving behind the Hanes, Bonds, Maidenform, Bali and Playtex underwear.
For its part, Gildan is best known for its manufacture of t-shirts, padded cottons, socks and underwear. Its corporate value amounted to just under $ 10 billion at market fence on Monday.
Taken from the Gildan website
The Montreal company has generally focused on the growth of its existing brands. Its most notable acquisition to date has been that of American Apparel in 2016 for US $ 88 million following a bankruptcy auction.
During a conference call last month, Gildan CEO Glenn Chamandy had rejected the idea that the company bought competing brands at low prices, saying that it was “much more advantageous to gain shares than to buy them”.
“But we don’t say that we wouldn’t examine something at the right time,” he added.
For the past year, Gildan’s action has climbed 15.64%. This morning, however, shortly after 10:20 am, his title was down 6.35% on the Toronto Stock Exchange.
