Gildan Activewear Announces Acquisition of Frontier Yarns
December 13 2021 - 8:00AM
Gildan Activewear Inc. (GIL: TSX and NYSE) today announced that,
through one of its wholly-owned subsidiaries, it has acquired 100%
of the equity interests of Phoenix Sanford, LLC, the parent company
of Frontier Yarns for a total cash consideration of approximately
$168 million.
Frontier is a leading producer of 100% cotton, polyester, and
cotton blend yarns primarily manufactured on open end and vortex
(MVS) spinning technology. The yarn operations of Frontier acquired
by Gildan include four facilities located in North Carolina
employing approximately 800 employees. During 2021, approximately
forty percent of Frontier’s production was dedicated to yarn sold
to Gildan for textile manufacturing in Central America and the
Caribbean.
The acquisition of Frontier will allow Gildan to build on its
global vertically integrated supply chain through further
internalizing yarn production. In addition, it will support yarn
availability for Gildan’s textile capacity expansion plans in
Central America and the Caribbean.
“As a long-time trusted yarn supplier of Gildan, with a
dedicated and experienced workforce, we are delighted to welcome
Frontier into the Gildan family” said Glenn J. Chamandy, President
and CEO of Gildan. “In line with our business model of investing in
global manufacturing, the acquisition of Frontier’s operations
broadens and complements our existing yarn capabilities and
provides additional yarn capacity to support long-term
growth.”
“This acquisition is a testament to the trust Gildan places in
our people, their expertise, and our operations and we see this
combination as a strong and natural fit” said Robin Perkins, CEO of
Frontier Yarns. “Having developed a long-standing relationship with
Gildan over the years, we are excited for our employees given this
new opportunity for collaboration and growth.”
About GildanGildan is a leading manufacturer of
everyday basic apparel which markets its products in North America,
Europe, Asia-Pacific, and Latin America, under a diversified
portfolio of Company-owned brands, including Gildan®, American
Apparel®, Comfort Colors®, Gildan® Hammer™, Prim + Preux®,
GoldToe®, Anvil® by Gildan®, Alstyle®, Secret®, Silks®, Secret
Silky®, Therapy Plus®, Peds® and MediPeds®, and under the Under
Armour® brand through a sock licensing agreement providing
exclusive distribution rights in the United States and Canada. Our
product offering includes activewear, underwear, socks, hosiery,
and legwear products sold to a broad range of customers, including
wholesale distributors, screenprinters or embellishers, as well as
to retailers that sell to consumers through their physical stores
and/or e-commerce platforms, and to global lifestyle brand
companies.
Gildan owns and operates vertically-integrated, large-scale
manufacturing facilities which are primarily located in Central
America, the Caribbean, North America, and Bangladesh. With
approximately 46,000 employees worldwide, Gildan operates with a
strong commitment to industry-leading labour and environmental
practices throughout its supply chain in accordance with its
comprehensive Genuine Responsibility® program embedded in the
Company's long-term business strategy. More information about the
Company and its corporate citizenship practices and initiatives can
be found at www.gildancorp.com and
www.genuineresponsibility.com, respectively.
Investor inquiries:Sophie ArgiriouVice President,
Investor Communications(514)
343-8815sargiriou@gildan.com |
Media inquiries:Genevieve GosselinDirector,
Corporate Communications & Marketing(514)
343-8814ggosselin@gildan.com |
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