Gildan Activewear Inc. agreed to buy U.S. underwear maker Hanesbrands Inc. for about US$2.2 billion in cash and stock, in its largest ever acquisition.

Canada-based Gildan is offering Hanesbrands holders roughly US$6 a share, based on the companies’ closing prices on Aug. 11, according to a statement Wednesday. Including debt, the deal values Hanesbrands at about US$4.4 billion.

The transaction targets synergies at least US$200 million within three years, according to the statement, and be at least 20 per cent accretive to Gildan’s earnings per share.

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Shares in Hanesbrands slid 7.4 per cent in premarket trading, after gaining 28 per cent on Tuesday following reports on the deal.