Gildan Activewear Inc. · TSX:GIL
Gildan Activewear — Merger or Acquisition (August 2025)
21 slides from Gildan Activewear's merger presentation, Aug 13, 2025
Slide 1: Gildan and HanesBrands Agree to Combine
Gildan and HanesBrands Agree to Combine To Create a Global Basic Apparel Leader August 13, 2025 1
Slide 2: Forward-Looking Statements and Information
FORWARD-LOOKING STATEMENTS AND INFORMATION In this Presentation, references to “Gildan” refer to Gildan Activewear Inc., and, where applicable, together with its subsidiaries, and references to “HanesBrands” refer to HanesBrands Inc. and, where applicable, together its subsidiaries. Certain statemen
Slide 3: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION All dollar amounts set forth herein are expressed in U.S. dollars. Gildan’s financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), and HanesBrands’ fina
Slide 4: Today's Presenters
Today’s Presenters Glenn Chamandy Stephen Bratspies Luca Barile Jessy Hayem President, Chief Executive Officer Executive Vice-President, Senior Vice-President, Chief Executive Officer Chief Financial Officer Head of IR and Global Communications 4
Slide 5: Combination expands Gildan's scale, increasing the strength of our basic apparel business
Global leader in everyday basic apparel, Global leader and scaled manufacturer with a state-of-the-art, vertically of iconic innerwear brands rooted in integrated manufacturing network tradition and unrivaled retail presence Combination expands Gildan’s scale, increasing the strength of our basic ap
Slide 6: Transaction Overview
Transaction Overview • Gildan to acquire all outstanding shares of HanesBrands for 0.102x Gildan shares and $0.80 cash per HanesBrands share • Implied value of $6.00 per HanesBrands share, representing an implied premium of ~24%1 Transaction Terms • Total enterprise value of $4.4B2, implying an 8.9x
Slide 7: Strengthening our Business Through Scale, Efficiencies, Innovation & Sustainability
Strengthening our Business Through Scale, Efficiencies, Innovation & Sustainability Leading Player in Activewear #1 Player in U.S. Innerwear State-of-the Art Low-Cost Manufacturing Footprint in Vertically Integrated Manufacturing Platform Central America, Caribbean Basin, Asia Strong Prese
Slide 8: HanesBrands Operates a Global Portfolio of Iconic, Market-Leading Innerwear Apparel Brands
HanesBrands Operates a Global Portfolio of Iconic, Market-Leading Innerwear Apparel Brands Review of Strategic Alternatives to be Initiated Innerwear Australia (“HAA”) Hanes #1 Innerwear Brand in the U.S.1 ~125 Year #1 in Men’s Underwear1 Brand Heritage #1 in Men’s and Women’s Underwear in Australia
Slide 9: Scaled Financial Profile With Industry Leading Margins
Scaled Financial Profile With Industry Leading Margins Our Combined Capabilities Enhance Our Competitive Advantage One of the largest global apparel players by number of units sold $6.9B 37% Enhanced supply chain capabilities to support Pro Forma Pro Forma major customers Net Sales1,2 ] Gross Ma
Slide 10: Complementary Portfolio Enhances Resiliency and Diversification
Complementary Portfolio Enhances Resiliency and Diversification Addition of HanesBrands’ Innerwear Brands Enhances Product Diversification1,2 Current Current Pro Forma Current Market Advantage ~10% ~10% + = Pro Broader consumer reach ~50% Forma ~50% Reinforced resilience to seasonal ~90% ~90% an
Slide 11: Combination Enhances Scale and Furthers Gildan's Cost Advantage
Combination Enhances Scale and Furthers Gildan’s Cost Advantage 40+ combined facilities across the world 6 yarn-spinning assets across Southeastern U.S. 3rd party yarn sourcing 22 textile & sewing facilities in Central 16 textile & sewing facilities across Central America, the Caribbean and Southeas
Slide 12: Significant Synergy Opportunity Across Supply Chain, Operations and SG&A
Significant Synergy Opportunity Across Supply Chain, Operations and SG&A $200M+ Benefit from Gildan’s best-in-class low-cost manufacturing structure Efficient reallocation of production volumes across geographies Supply Chain Utilize vertical integration capabilities to deliver savings through
Slide 13: Building On Our Margin Leadership Position
Building On Our Margin Leadership Position Pro Forma LTM Adj. EBITDA Margin1,2,3,4 23% Inclusive of $200M of Expected Run-Rate Synergies5 ~3% 18% 20% 17% 15% 13% 11% 10% 10% 10% 6% 4% Gildan PF Ralph Lauren Kontoor Levi's PVH Oxford Industries Carter's G-III Columbia Under Armour VF Corp Global Appa
Slide 14: Enhanced Go-to-Market Capabilities Enable Cross-Selling Opportunities
Enhanced Go-to-Market Capabilities Enable Cross-Selling Opportunities ~3-5% Pro Forma Organic Net Sales CAGR1 Harness State-of-the-Art, Vertically Integrated Manufacturing Platform to Drive Innovation Support Hanes’ Iconic Brand Growth +Mid-Single in Activewear in the Retail Channel +Low-Single
Slide 15: Clear Path to Long-Term Value Creation
Clear Path to Long-Term Value Creation1 Net Sales Net sales CAGR of ~3-5% Capital Expenditures ~3-4% of net sales Leverage Long-term target net debt leverage ratio of 1.5x – 2.5x2 Return to Shareholders Enhanced shareholder returns through dividends and share repurchases3 Adjusted Diluted EPS2 Adjus
Slide 16: Compelling Strategic and Financial Rationale
Compelling Strategic and Financial Rationale Improved Scale and Market Position Creates a Global Basic Apparel Leader Strengthened Go-to-Market and Retail Capability Set with Addition of Iconic Hanes Brand Enhanced Diversification and Resiliency via Complementary Products and Channels Enhanc
Slide 17: Appendix – Definition of Non-GAAP and Other Financial Measures
Appendix – Definition of Non-GAAP and Other Financial Measures 17
Slide 18: Presentation of Financial Information
PRESENTATION OF FINANCIAL INFORMATION References to “LTM” in this presentation means the trailing twelve-month period ended June 29, 2025. Gildan’s financial information for the LTM period ended June 29, 2025 presented herein is unaudited and has been derived by adding Gildan’s unaudited interim con
Slide 19: Definition and Reconciliation of Selected Non-GAAP Financial Measures
Definition and Reconciliation of Selected Non-GAAP Financial Measures Adjusted EBITDA, Combined Adjusted EBITDA and Margin, Pro Forma Adjusted EBITDA and Margin (Including Expected Synergies)1 Gildan Hanesbrands Combined and Pro Forma LTM LTM LTM (In $US millions, on a trailing 12-month basis, unaud
Slide 20: Supplemental Financial Measures
Supplemental Financial Measures Pro Forma Net Sales, Gross Profit and Gross Margin1 Gildan Hanesbrands Pro Forma LTM LTM LTM (In $US millions, on a trailing 12-month basis, unaudited) June 29, 2025 June 28, 2025 June 29, 2025 Net sales 3,342.8 3,540.2 6,883.0 Gross profit 1,041.9 1,492.4 2,534.3 Gro
Slide 21: END
sGILDAN HBI HANESBRANDS INC. END
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