MONTREAL, QUEBEC -- (Marketwired) -- 06/18/13 -- Gildan Activewear Inc. (TSX: GIL)(NYSE: GIL) has announced today that it has signed a definitive agreement to acquire substantially all of the assets of New Buffalo Shirt Factory Inc. (New Buffalo) and its operating affiliate in Honduras, for approximately U.S. $7 million. The closing of the transaction is expected to take place imminently.
New Buffalo is a leader in screenprinting and apparel decoration, which, in conjunction with Anvil and certain other apparel manufacturers, provides high-quality screenprinting and decoration of apparel for global lifestyle and athletic brands. The rationale for the acquisition of New Buffalo is to complement the further development of Anvil's business with the major consumer brands which it supplies, and this customer base is expected to fully utilize the capacity of the New Buffalo facilities.
Although the main focus of Gildan's growth strategy is the continued development of its company-owned brands sold through printwear distributors and retailers, the Company believes it also has a growth opportunity to build on Anvil's business as a supply chain partner to global consumer brands. Such customers are increasingly seeking to consolidate their sourcing with large-scale manufacturers which are strategically located in the Western Hemisphere, which can be trusted to ensure their brand reputation for product quality and which are committed to the highest standards of corporate social responsibility in their vertical manufacturing operations.
The key management of New Buffalo, including founding entrepreneur Jon Weiss, will continue to operate the business under Gildan ownership.
Gildan is a leading supplier of quality branded basic family apparel, including T-shirts, fleece, sport shirts, socks and underwear. The Company sells its products under a diversified portfolio of Company-owned brands, including the Gildan®, Gold Toe® and Anvil® brands and brand extensions, as well as under license agreements for the Under Armour® and New Balance® brands. The Company distributes its products in printwear markets in the U.S. and Canada, where Gildan® is the industry-leading brand, and the Company is increasing its penetration in international printwear markets. The Company is also one of the largest suppliers of branded athletic, casual and dress socks for a broad spectrum of retailers in the U.S., and is developing Gildan® as a consumer brand for underwear and activewear.
Gildan owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America and the Caribbean Basin to efficiently service the replenishment needs of its customers in the printwear and retail markets. Gildan has over 33,000 employees worldwide and is committed to industry-leading labour and environmental practices in all of its facilities. More information about the Company and its corporate citizenship practices and initiatives can be found at its corporate websites www.gildan.com and www.genuinegildan.com, respectively.
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