16 Dec Gildan Activewear Announces Acquisition Of Frontier Yarns
Gildan Activewear Inc. announced that through one of its wholly-owned subsidiaries it has acquired 100 percent 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 producer of 100 percent cotton, polyester and cotton blend yarns primarily manufactured on open-end and vortex (MVS) spinning machines. Frontier’s yarn operations acquired by Gildan include four plants in North Carolina that employ approximately 800 workers. In 2021, approximately forty percent 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 allow Gildan to build on its global vertically integrated supply chain through further internalizing its yarn production. The acquisition also supports yarn availability for Gildan’s textile expansion in Central America and the Caribbean.
“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,” said Glenn J. Chamandy, president and CEO. “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.”
“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,” said Robin Perkins, CEO, Frontier Yarns. “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.”
Gildan is a manufacturer of basic apparel under a portfolio of company-owned brands, including Gildan, American Apparel, Comfort Colors, Gildan Hammer, Prim + Preux, GoldToe, Anvil by Gildan, Alstyle, Secret, Silks, Secret Silky, Therapy Plus, Peds and MediPeds, and Under Armour through a sock licensing agreement.