Gildan board sets April 10 deadline for takeover offers

The board of directors of Gildan, a publicly traded apparel basics manufacturer, has reportedly set April 10 as the deadline for receiving initial offers from parties interested in acquiring the company. The board wants to analyse the offers before the company's planned May 28 annual shareholders meeting.

Transaction snapshot

  • Deal value: Estimated US$7bn ($10.7bn)
  • Deal multiples: N/A
  • Deal type: Acquisition
  • Investors: Sycamore Partners, Clayton, Dubilier & Rice, and Bain Capital reportedly interested

Interested bidders reportedly include private equity firms Sycamore Partners, which owns Staples Promotional Products; Clayton, Dubilier & Rice, owner of S&S Activewear; and Bain Capital, with a portfolio that includes Varsity Brands and Canada Goose.

The potential sale comes amid a corporate fight between Gildan's board of directors and co-founder/former CEO Glenn Chamandy, along with activist investors led by Browning West. Chamandy was fired in December and replaced by Vince Tyra, an executive with experience in the apparel business and private equity.

Browning West has put forward a plan to replace eight current company board members with new directors, including Chamandy, who is expected to be reinstalled as CEO if the new candidates win the shareholder vote on May 28.

The eight business leaders aiming to take seats on the board have released a five-pillared plan to increase Gildan's share price to more than $100 within five years. The plan includes initiatives such as taking on more debt to fund growth, increasing market share in the fashion-basics category by lowering unit costs, capturing more market share in the growing fleece niche, and establishing an "aspirational compensation plan" for Gildan's approximately 43,000 employees.

Based on estimated 2022 North American promo product revenue of $762.2 million, Gildan ranked fifth on Counselor's most recent list of the largest suppliers in the industry. In February, Gildan reported that total global full-year sales across all its business divisions fell 1.4% year over year in 2023 to about $3.19 billion.

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