LUBBOCK, TX – Two of the world’s largest basic apparel makers—Gildan Activewear and HanesBrands—have agreed to merge in a deal valued at $4.4 billion. The combination will create a global leader in activewear and innerwear, with a vertically integrated manufacturing network capable of producing massive volumes of cotton-based clothing.
For U.S. cotton growers, the merger could offer upside. Both companies source significant amounts of cotton for t-shirts, underwear, socks, and fleece products. With Gildan’s low-cost, vertically integrated mills and HanesBrands’ established retail presence, the combined firm is expected to increase production efficiency, expand distribution, and potentially raise demand for U.S.-grown fiber. Industry analysts note that cost synergies—projected at $200 million annually within three years—could make U.S. cotton more competitive in global supply chains, especially for higher-quality fiber used in premium innerwear.
The merger is set to close in late 2025 or early 2026, pending regulatory and shareholder approvals. While no sourcing changes have been announced, cotton producers will be watching closely to see if the combined company ramps up U.S. fiber use to support its expanded brand portfolio.