18th June 2013, Montreal
Gildan Activewear, a leading supplier of quality branded basic family apparel, including T-shirts, fleece, sport shirts, socks and underwear, has signed an agreement to acquire the assets of New Buffalo Shirt Factory Inc. (New Buffalo) and its operating affiliate in Honduras, for approximately U.S. $7 million. The transaction is expected to close with immediate effect.
New Buffalo is a leader in screenprinting and apparel decoration, which, in conjunction with Gildan’s Anvil and certain other apparel manufacturers, provides high-quality screenprinting and decoration of apparel for global lifestyle and sports brands. The rationale for the acquisition of New Buffalo 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’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 said to be 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.