HanesBrands confirmed that its shareholders have approved the company’s planned merger with Gildan Activewear, a key milestone that allows the proposed transaction to proceed to the remaining regulatory and procedural stages.
According to HanesBrands, the vote reflects broad investor support for the deal, which was announced earlier this year and is designed to create a combined platform across basics, underwear and activewear in North America and key international markets.
The merger now moves into its final procedural phase, including regulatory reviews and customary closing conditions. No closing date has yet been confirmed.
Strategic rationale
The combination of HanesBrands and Gildan Activewear brings together two large-scale manufacturers with deep expertise in innerwear, active basics and imprintable apparel. A merged entity would benefit from expanded distribution in the US mass channel, broader reach in screen printing and promotional markets, and increased operational leverage across manufacturing and sourcing networks.
Analysts note that both companies have faced margin pressure in recent years due to inflation, inventory corrections and intensified competition in value-focused apparel categories. Consolidation may support cost efficiencies and a more streamlined product architecture across private-label, licensed and heritage brands.
Market concentration and customer dependency
The merger also raises questions about customer dependency across the sporting goods supply chain. Retailers, team dealers, and promotional products distributors currently source from both companies independently, maintaining supplier diversification to manage risk and negotiate terms. A combined entity would reduce competitive alternatives in several key product categories, potentially shifting negotiating leverage toward the supplier.
For large sporting goods chains and national team outfitters, this could necessitate deeper relationships with alternative manufacturers or increased investment in private-label development outside the HanesBrands–Gildan ecosystem. The degree to which customers can absorb potential price increases or supply constraints will depend largely on their own scale and category positioning.
The bottom line
Shareholder approval removes a key obstacle for the HanesBrands–Gildan merger, which would create one of the largest vertically integrated basics and activewear suppliers in the category. Regulatory clearance will determine the timeline for completion.
