Gildan Activewear Acquires Peds Legwear Inc.
Gildan Activewear, Montreal, Quebec, announced yesterday that it signed a $55 million cash deal to acquire 100 percent of equity interest for Peds Legwear Inc., a Montreal-based supplier of the Peds and MediPeds brands of foot apparel and leg wear products. The two companies expect the acquisition to close by the end of August, according to a press release.
Peds currently generates approximately $80 million in revenue annually. Gildan Activewear reported a 4.7 percent decline in net income in its second quarter, but hopes to create more revenue opportunities by adding Peds' brands into its existing categories.
"This company was originally founded 80 years ago in Quebec, and we are proud to have successfully built Peds and MediPeds into such strong brands," Michael Penner, CEO of Peds, said in a press release. "Gildan has had great success over the years building its manufacturing leadership and strong portfolio of brands, and we feel it is well-positioned to take the Peds brands to new heights."
"The Peds brand comes with a strong heritage, particularly in the ladies' category, and is a good, complementary addition to Gildan's growing portfolio of brands," Glenn Chamandy, president and CEO of Gildan Activewear, said in a press release.
Gildan Activewear also noted a 7.9 percent drop in branded apparel sales and a 1.4 percent drop in printwear. The company cited "headwinds from distributor inventory destocking in printwear," as a cause.