TORONTO — Shareholders of Gildan Activewear Inc. and HanesBrands Inc. have agreed to the terms of a planned combination of the two companies, a press release from S&P Dow Jones Indices says.
Shares of HanesBrands will be exchanged for 80 cents US in cash and 0.102 shares of Gildan Activewear per each share held of HanesBrands, the press release says.
In August, Montreal-based Gildan announced a deal to snap up HanesBrands for US$2.2 billion.
At the time, Gildan noted the combined entity would be outfitted with both an efficient manufacturing base and strong brand recognition that would create more potential for growth.
When the deal was announced, Gildan was promising not only at least US$200 million in cost savings through efficiencies of the combined companies, but also using Gildan’s manufacturing base to help expand the Hanes brand into activewear.
The deal came about a year and a half after Gildan was fielding offers from interested buyers.
