Why Gildan Activewear (GIL) Is Buying Frontier For $168 Million

By Amit Chowdhry ● Dec 13, 2021
  • Gildan Activewear Inc. (NYSE: GIL) announced that through one of its wholly-owned subsidiaries it has acquired 100% of the equity interests of Phoenix Sanford. These are the details.

Gildan Activewear Inc. (NYSE: GIL) announced that through one of its wholly-owned subsidiaries it has acquired 100% of the equity interests of Phoenix Sanford, LLC, the parent company of Frontier Yarns for a total cash consideration of approximately $168 million. These are the details.

Gildan Activewear Inc. (NYSE: GIL) announced that through one of its wholly-owned subsidiaries it has acquired 100% 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 leading producer of 100% cotton, polyester, and cotton blend yarns primarily manufactured on the open end and vortex (MVS) spinning technology. And the yarn operations of Frontier acquired by Gildan include four facilities located in North Carolina employing approximately 800 employees. In 2021, approximately 40% 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 enable Gildan to build on its global vertically integrated supply chain through further internalizing yarn production. And it will support yarn availability for Gildan’s textile capacity expansion plans in Central America and the Caribbean.

KEY QUOTES:

“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. 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.”  

— Glenn J. Chamandy, President and CEO of Gildan

“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. 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.”

— Robin Perkins, CEO of Frontier Yarns

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