Gildan Acquires Frontier Yarns In $168 Million Transaction
Supplier Gildan Activewear (PPAI 250187, S13) has acquired 100 percent of the equity interests of Phoenix Sanford, LLC, the parent company of Frontier Yarns. The Montreal, Quebec-based supplier reports that the sale was made in a total cash consideration of approximately $168 million.
In a statement, Gildan highlighted that the acquisition will allow the company to build on its global vertically integrated supply chain through further internalizing yarn production. It will also support yarn availability for Gildan’s textile capacity expansion plans 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,” says Glenn J. Chamandy, president and CEO of Gildan. “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.”
Frontier is a producer of 100-percent cotton, polyester and cotton-blend yarns, primarily manufactured on open end and vortex (MVS) spinning technology. The Frontier yarn operations acquired by Gildan include four facilities located in North Carolina, employing approximately 800 employees. During 2021, approximately 40 percent of Frontier’s production was dedicated to yarn sold to Gildan for textile manufacturing in Central America and the Caribbean.
In 2017, Gildan emerged as the winner in the court-supervised auction to acquire the American Apparel brand and certain assets from American Apparel, LLC, then going through bankruptcy proceedings. More recently, the promotional products industry has registered several large acquisitions in the later part of 2021. In November, supplier S&S Activewear signed a definitive agreement to acquire supplier TSC Apparel and in July, Vantage Apparel expanded into Europe with the acquisition of Krakow, Poland-based corporate apparel supplier Lynka. On the distributor side, transactions included BAMKO's acquisition of Sutter’s Mill Specialties, Inc. earlier this month, and in November, Custom Ink’s deal for Swag.com, distributor and “gifting-as-a-service” platform provider.