Gildan Activewear Inc. 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
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.
Source Gildan through SpoertsOnesource
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