Posted June 19, 2014

 

MONTREAL – Gildan Activewear, Inc. announced today that it has signed a definitive agreement to acquire substantially all of the assets of Doris Inc., a Montreal-based marketer and manufacturer of branded sheer hosiery, legwear and shapewear products to retailers in Canada and the U.S.

 

According to Gildan, the initial purchase price is about 101.4 million, with possible additional contingent payments of up to $9.2 million, which are based on the achievement of targets for growth in sales revenues.

 

Doris is the third largest marketer of branded ladies legwear in North America and the market leader in Canada, with products sold throughout all retail channels of distribution. Its company-owned brands include Secret®, one of the most recognized sheer pantyhose brands and a growing brand for shapewear in Canada, the Silks® brand and TherapyPlus®, which provides therapeutic legwear solutions for medical conditions and everyday activities.

 

Doris also markets its brands including Kushyfoot® and TherapyPlus® in the U.S. Revenues in the U.S. account for close to 30 percent of Doris’ total sales, Gildan said. In addition, Doris has brand licenses and supplies selective retailer private label programs.

 

Revenues of Doris for the year ended March 31 amounted to about $87.6 million.

 

The acquisition of Doris immediately provides Gildan with a strong sales organization and platform for retail distribution of the Gildan® and Gold Toe® brands in Canada, it said. The acquisition also further enhances the company’s consumer brand portfolio within its existing U.S. retail distribution and positions it to increase its penetration in the basic women’s apparel markets.

 

It will position the company for entry into the ladies intimates’ category and, in addition, further broadens the company’s retail distribution network in the United States due to Doris’ strong presence in the food and drug channel, according to Gildan.

Doris operates a distribution facility and a sheer hosiery manufacturing facility with knitting, dyeing and packaging capabilities in Montreal. About half of Doris’ production is vertically integrated. Doris’ management team, including the founder’s son, President and Chief Executive Officer Jack Hasen, will join Gildan and contribute to the further development of Gildan’s Canadian retail branding strategy.

 

The acquisition is subject to customary closing conditions and is expected to close in early July.

 

Last month, Gildan said it plans to spend an additional $30 million and construct a larger yarn-spinning plant than anticipated in Mocksville, N.C.