Gildan to Buy Underwear Maker Hanesbrands for $2.2 Billion (2)

Gildan Activewear Inc. agreed to buy US underwear maker Hanesbrands Inc. — aiming to double its annual sales — for about $2.2 billion in cash and stock.

Montreal-based Gildan is offering Hanesbrands holders roughly $6 a share, based on the companies’ closing prices on Aug. 11, representing a premium of about 24% to the closing price on that date, according to a statement Wednesday. Including debt, the company’s largest deal ever values Hanesbrands at about $4.4 billion.

“With this transaction, our revenues will double and we achieve a scale that distinctly sets us apart,” Gildan’s Chief Executive Officer Glenn Chamandy ...