Gildan Activewear Announces Agreement to Acquire New Buffalo Shirt Factory
Gildan Activewear Inc. has announced that it has signed a definitive agreement to acquire substantially all of the assets of New Buffalo Shirt Factory Inc., of Clarance, N.Y., and its operating affiliate in Honduras, for approximately $7 million. The closing of the transaction is expected to take place imminently.
New Buffalo Shirt Factory is a leader in screen printing and apparel decoration, which, in conjunction with Anvil and certain other apparel manufacturers, provides high-quality screen printing and decoration of apparel for global lifestyle and athletic brands. The rationale for the acquisition of New Buffalo Shirt Factory is to complement the further development of Anvil's business with the major consumer brands which it supplies, and this customer base is expected to fully utilize the capacity of the New Buffalo facilities.
Although the main focus of Gildan Activewear's growth strategy is the continued development of its company-owned brands sold through printwear distributors and retailers, the company believes it also has a growth opportunity to build on Anvil's business as a supply chain partner to global consumer brands. Such customers are increasingly seeking to consolidate their sourcing with large-scale manufacturers which are strategically located in the Western hemisphere, which can be trusted to ensure their brand reputation for product quality and which are committed to the highest standards of corporate social responsibility in their vertical manufacturing operations.
The key management of New Buffalo, including founding entrepreneur Jon Weiss, will continue to operate the business under Gildan ownership.
For more information, visit www.gildan.com.