In a major move to consolidate the basic side of the apparel industry, Gildan Activewear Inc. has agreed to buy HanesBrands Inc. in a cash and stock deal that values the innerwear giant stock at $2.2 billion.

The Canadian garment company said the acquisition will expand its scale and strengthen its global positioning.

Gildan Activewear has entered into a definitive agreement to pay $2.2 billion for HanesBrands in a deal that places its enterprise value at $4.4 billion.