Hanesbrands (NYSE:HBI) shares popped almost 37% premarket on a report that it will be acquired by Canada’s Gildan Activewear (NYSE:GIL) for $5 billion, including debt.
Per a report from the Financial Times, which cited people with knowledge of the matter, talks are at an advanced stage. A deal could be finalized by the end of the week, the publication reported.
The deal reportedly represents a significant premium above Hanesbrands’ recent market capitalization of about $1.7 billion at Monday’s close.
Gildan Activewear, known for its basic apparel and customization products, would gain access to Hanesbrands' well-known innerwear brands such as Hanes, Bonds, and Maidenform through this deal.
Hanesbrands has been challenged by new global tariffs that have impacted 75% of its sales, with its stock falling more than 40% in 2025.
The company recently sold its Champion sportswear brand in a $1.2 billion deal to Authentic Brands Group to reduce debt and focus on its core innerwear business.
Shares of Gildan Activewear fell 8% to $47.