Gildan Activewear shared that its board of directors made the decision to put the blank apparel manufacturer up for sale, talking with various bidders, according to Reuters. The decision comes after a months-long battle between Gildan’s top stakeholders and the board following the firing of co-founder and CEO Glen Chamandy and the appointment of Vince Tyra as president and CEO in December.
While one potential buyer has come with a “takeover approach,” Gildan has investment banks RBC Capital Markets and Goldman Sachs Group seeking additional bidders, according to The Globe and Mail. Multiple news sources state that Gildan confirmed it had received a “confidential non-binding expression of interest to acquire” the company, and a board committee will review the proposal.
“The Special Committee determined that it was consistent with its fiduciary duties and in the best interests of Gildan to contact other potential bidders with a view to maximizing the value of any potential transaction,” Simon Beauchemin, Gildan’s spokesperson, told Reuters.
As of March 19, Bloomberg reports that private equity firm Sycamore Partners is exploring an offer for Gildan but declined to comment. “The New York-based buyout firm has discussed financing options with potential lenders, according to one of the people, who requested anonymity to discuss confidential information,” Bloomberg notes.
Beauchemin shares that Gildan’s committee and financial advisors have interest from some bidders looking to make a “friendly” transaction. However, it’s important to note that while Gildan is reviewing offers from potential buyers, there’s no guarantee a transaction will take place.
“Shares of Gildan surged 10.8% in Toronto trading on Tuesday — giving the company a market value of about C$8.6 billion ($6.3 billion) — before trading was halted,” according to Bloomberg.
