Montreal - Gildan Activewear has agreed to acquire Comfort Colors, a major supplier of garment-dyed, undecorated basic T-shirts and sweatshirts for the North American printwear market.
The US$100 million deal is part of the company?s ongoing strategy to increase its market share in the fashion basics segment of printwear sector.
Comfort Colors markets its products under the Comfort Colors brand, which, it says, is one of the most recognized brands among consumers purchasing from college bookstores, speciality retail stores, destination and resort shops. Comfort Colors purchases prepared-for-dye garments from third-party vendors, including Gildan. The garments are subsequently treated through a customized in-house dyeing process, giving the shirts a trendy distressed or worn look and a soft and a comfortable feel.
Comfort Colors has generated strong annual sales growth over the last four years reflecting the brand?s fast growing consumer appeal. During the twelve-month period ended December 31, 2014, Comfort Colors generated net sales of approximately $95 million, or $55 million after eliminating Gildan sales of undecorated shirts to Comfort Colors. EPS accretion in the balance of calendar 2015 from the acquisition is projected to be approximately$0.05 after reflecting the amortization of intangible assets and a non-recurring acquisition-related inventory charge.
Comfort Colors is headquartered in Northfield, Vermont and has dyeing, packaging and distribution operations in facilities in Northfield, Vermont and New Bedford, Massachusetts.