(Filed Under Financial and General Interest News). Gildan Activewear, Inc. announced it has signed an agreement to “acquire substantially all of the assets of Doris Inc. (Doris), a marketer and manufacturer of branded sheer hosiery, legwear and shapewear products to retailers in Canada and the United States." The initial purchase price is approximately $101.4 million.
The company added that “possible additional contingent payments of up to...$9.2 million, which are based on the achievement of targets for growth in sales revenues,” could also be made. “The purchase consideration will be paid in cash and will be financed out of Gildan’s bank credit facility.”
According to the Gildan announcement, “Doris is the third largest marketer of branded ladies legwear in North America and the market leader in Canada, with products sold throughout all retail channels of distribution. Its company-owned brands include Secret, one of the most recognized sheer pantyhose brands and a growing brand for shapewear in Canada, the Silks brand, and TherapyPlus, which provides therapeutic legwear solutions for medical conditions and everyday activities.” In addition, Doris also sells in the U.S. under the brands Kushyfoot and TherapyPlus. Those sales “account for close to 30% of Doris’ total sales.”
For the year ended March 31, 2014, total sales at Doris were $87.6 million
According to Gildan, “The acquisition of Doris immediately provides Gildan with a strong sales organization and platform for retail distribution of the Gildan and Gold Toe brands in Canada. The acquisition also further enhances the company’s consumer brand portfolio within its existing U.S. retail distribution and positions it to increase its penetration in the basic women’s apparel markets. It will position the company for entry into the ladies intimates’ category and, in addition, further broadens the company’s retail distribution network in the United States due to Doris’ strong presence in the food and drug channel.”
The Gildan announcement also noted that “Doris’ head office is located in Montréal, Québec. Doris operates a distribution facility and a sheer hosiery manufacturing facility with knitting, dyeing and packaging capabilities in Montréal. Approximately half of Doris’ production is vertically-integrated. Doris’ management team, including the founder’s son, President and Chief Executive Officer Jack Hasen, will join Gildan and contribute to the further development of Gildan’s Canadian retail branding strategy. The acquisition is subject to customary closing conditions and is expected to close in early July 2014.”
For the fiscal year 2013 Gildan had net earnings of $320.2 million on sales of $2.2 billion. In addition to Gildan and Gold Toe, the company owns the Anvil brand and licenses such brands as Under Armour, Mossy Oak and New Balance.
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