Gildan Activewear has announced the acquisition of Frontier Yarns through one of its wholly-owned subsidiaries for a total cash consideration of approximately $168 million.
Frontier Yarns is described as a leading producer of 100% cotton, polyester, and cotton yarns primarily manufactured on open end and vortex spinning technology.
The deal includes four yarn facilities located in North Carolina, employing around 800 people. During 2021, approximately forty percent of Frontier’s production was dedicated to yarn sold to Gildan for textile manufacturing in Central America and the Caribbean.
Gildan says the acquisition will allow it to build on its globally integrated supply chain through further internalising yarn production.
Glenn J. Chamandy, president and CEO of Gildan, said: “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.
“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.”
Robin Perkins, CEO of Frontier Yarns, added: “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.
“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.”