Gildan To Acquire Branded Sheer Hosiery Maker For C$110 Mln

(RTTNews) - Canadian apparel maker Gildan Activewear Inc (GIL.TO, GIL) Thursday agreed to acquire substantially all of the assets of Doris Inc, a manufacturer of branded sheer hosiery, legwear and shapewear products to retailers. The initial purchase price is about C$110 million, with possible additional contingent payments of up to C$10 million, which are based on the achievement of targets for growth in sales revenues. The purchase consideration will be paid in cash and will be financed out of Gildan's bank credit facility.

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.

Revenues of Doris for the year ended March 2014 amounted to about C$95 million. The deal is expected to be immediately accretive to Gildan's earnings in fiscal 2015.

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.

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.

The deal is expected to close in early July.