Montréal—Canadian apparel maker Gildan Activewear Inc today agreed to acquire substantially all of the assets of Doris Inc, a manufacturer of branded sheer hosiery, legwear and shapewear products. The initial purchase price is about $110 million Canadian, with possible additional contingent payments of up to $10 million Canadian, which are based on the achievement of targets for growth in sales revenues. The purchase consideration will be paid in cash and will be financed out of Gildan’s bank credit facility.
Doris is the third largest marketer of branded ladies legwear in North America and the market leader in Canada, with products sold throughout all retail channels of distribution. Its company-owned brands include Secret, one of the most recognized sheer pantyhose brands and a growing brand for shapewear in Canada, the Silks brand, and TherapyPlus, which provides therapeutic legwear solutions for medical conditions and everyday activities. Doris also markets its brands including Kushyfoot and TherapyPlus in the U.S.
Revenues in the United States account for about 30% of Doris’ total sales. In addition, Doris has brand licenses and supplies selective retailer private label programs.
For the year ended March 31, Doris reported revenue of about $95 million Canadian. The deal is expected to be immediately accretive to Gildan’s earnings in fiscal 2015.
The acquisition of Doris immediately provides Gildan with a strong sales organization and platform for retail distribution of the Gildan and Gold Toe brands in Canada, Gildan said.
The acquisition also further enhances the company’s consumer brand portfolio within its existing U.S. retail distribution and positions it to increase its penetration in the basic women’s apparel markets.
The deal is expected to close in early July.