A Canadian company just struck a massive $2.2 billion deal that could reshape American manufacturing and potentially impact thousands of U.S. jobs as foreign control extends deeper into our domestic apparel industry.
Story Highlights
- Canada’s Gildan Activewear acquires iconic American brands Hanes, Champion, and Maidenform for $2.2 billion
- Deal creates foreign-controlled apparel giant with headquarters moving from North Carolina to Montreal
- Transaction triggers $200 million in “cost synergies” that could mean significant U.S. job cuts
- Combined company will control major share of American underwear and basic clothing market
Foreign Acquisition of American Icons
Gildan Activewear announced its acquisition of HanesBrands on August 13, 2025, in a deal valued at $4.4 billion including debt assumption. The transaction transfers control of legendary American brands like Hanes, Champion, and Maidenform to Canadian ownership. HanesBrands, with roots dating back to 1901, represents over a century of American manufacturing heritage now heading north of the border.
Canada's Gildan Activewear is buying HanesBrands for $2.2 billion! This put the transaction’s valued at ~ $4.4 billion when HanesBrands' debt included! $HBI $GIL #retailer #clothing #tshirt #consumer https://t.co/Vjhc8mVG0l
— AlphaBronze (@Alpha_Bronze) August 13, 2025
The combined entity will maintain headquarters in Montreal while keeping a “significant presence” in Winston-Salem, North Carolina. This arrangement raises concerns about decision-making power shifting away from American communities that have depended on these manufacturing jobs for generations. Gildan CEO Glenn Chamandy emphasized the deal will “double revenues” and create unprecedented scale in basic apparel.
Job Security Concerns and Cost Cutting
Gildan projects $200 million in annual “cost synergies” within three years, with $50 million targeted for 2026, $100 million in 2027, and another $50 million in 2028. Corporate euphemisms like “synergies” typically translate to workforce reductions, facility closures, and operational consolidations. The timeline suggests systematic job cuts will unfold gradually across both companies’ American operations.
HanesBrands employees face particular uncertainty as the acquired company carried approximately $2 billion in debt that Gildan plans to refinance. Overlapping supply chains and administrative functions between the companies make redundancies inevitable. Workers in traditional manufacturing communities, already struggling with decades of outsourcing, now confront foreign ownership prioritizing efficiency over employment stability.
Market Concentration Under Foreign Control
The merger creates concerning market concentration in basic apparel, with foreign ownership controlling a dominant share of American underwear, t-shirts, and activewear. This consolidation reduces competition and consumer choice while shifting strategic decisions about American manufacturing to Canadian executives. The deal follows a troubling pattern of foreign acquisitions in sectors vital to domestic economic security.
Regulatory approval remains pending, though antitrust authorities have historically permitted apparel industry consolidation. The transaction’s completion in late 2025 or early 2026 depends on shareholder approval and regulatory clearance. American consumers and workers deserve scrutiny of deals that concentrate market power under foreign control while threatening domestic employment.
Sources:
Gildan and HanesBrands Agree to Combine To Create a Global Basic Apparel Leader
Gildan and HanesBrands agree to combine to create a global basic apparel leader
Gildan Activewear to Acquire HanesBrands in a $4.4 Billion Cash and Stock Deal
