Gildan Activewear Up For Sale

TechTalk

Gildan Activewear Up For Sale

Gildan Activewear said on Tuesday the board has decided to put the Canadian clothing maker up for sale and is in talks with multiple bidders.

"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 maximising the value of any potential transaction," Simon Beauchemin, Gildan's spokesperson, said.

Gildan had received a takeover approach from a potential buyer over the last four weeks and the company mandated investment banks RBC Capital Markets and Goldman Sachs Group to look for additional bidders, according to reports.

Beauchemin said the special committee, with the help of financial advisors, has reached out to a few reputable potential partners. The spokesperson added some have shown interest in exploring a potential friendly transaction with Gildan.

However, Beauchemin noted there can be no assurance any transaction will result from these discussions. Gildan's listings on the New York and Toronto stock exchanges were halted.

Gildan has been embroiled in a battle between its top stockholders, such as investment firm Browning West, and the board, which fired co-founder and CEO Glenn Chamandy in December.

In late January, Gildan said it would hold an annual and special shareholder meeting on May 28 amid the ongoing dispute to replace a majority of its board members and reinstate Glen Chamandy as CEO.

Private equity firm Sycamore Partners is exploring an offer for Gildan, according to a Bloomberg News report.