MONTREAL — December 13, 2021 — Gildan Activewear Inc. today announced that, through one of its wholly-owned subsidiaries, it has acquired 100 percent 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 producer of 100-percent 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.”
Posted December 13, 2021
Source: Gildan Activewear Inc.