Gildan Completes Purchase of Doris, Inc.
Paid Initial Price Of $101 Million
Apparel supplier Gildan Activewear Inc. (asi/56842) has completed the acquisition of Doris Inc., effective July 7. Last month, Gildan announced it had entered into an agreement to acquire substantially all of the assets of Doris, a Montreal-based manufacturer of hosiery, legwear and other shapewear products.
“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,” Gildan said, in a statement. “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.”
Gildan paid an initial price of $101 million to purchase Doris, with additional payments of up to $9.2 million possible, contingent on revenue growth. Doris controls a significant part of the Canadian hosiery market, generating $90 million annually. About 30% of Doris’ sales come in the U.S. Doris is one of the five largest makers of hosiery in North America and offers brands like Secret, Silks, Kushyfoot, and TherapyPlus. The company, which employs about 400 workers in Montreal, produces sheer items in Canada, but imports other apparel from Asia. It’s possible, media reports suggest, that Gildan will shift Doris’ Asian sourcing to facilities in Central America.
“We have significant growth opportunities as a company,” said Gildan CEO Glenn Chamandy, speaking about the Doris deal. “This is only going to help expedite that growth potential.”