Gildan Activewear Inc., Montréal, recently signed a definitive agreement to acquire Comfort Colors for a total purchase price of about $100 million.
Comfort Colors, a supplier of garment-dyed, undecorated basic T-shirts and sweat shirts for the North American printwear market, sells its products under the Comfort Colors brand, which is one of the most recognized brands among consumers purchasing from college bookstores, specialty retail stores, and destination and resort shops, according to the company.
Operating out of its headquarters in Northfield, Vt., as well as its dyeing, packaging and distribution operations in facilities in Northfield and New Bedford, Mass., Comfort Colors purchases prepared-for-dye garments from third-party vendors, including Gildan. The garments are then treated through a customized in-house dyeing process, giving them a trendy distressed or worn look and a soft and a comfortable feel.
“We have a very large, developed T-shirt business, so when the Comfort Colors brand became available, it just seemed like it was a natural extension of our business,” says Mike Hoffman, President of Gildan Activewear SRL. “It reinforces Gildan’s strategy to increase our penetration into what we call the ‘basic fashion segment’ of the North American printwear market.”
Comfort Colors has generated annual sales growth over the last four years, with top-selling items including crew-neck T-shirts, pocket tees, long-sleeve tees and pullover sweat shirts. During the 12-month period ending Dec. 31, 2014, the company generated net sales of about $95 million.
“We think that the overall combination of Gildan and Comfort Colors will enhance the overall customer experience,” Hoffman says. “Over the next coming weeks and months, we will develop an integration plan between our management team and existing Comfort Colors management team. The purpose of the whole integration plan will be how we can best integrate their new business and their company into ours and where we can leverage synergies.”
The acquisition is subject to customary closing conditions and is expected to close by the end of the current calendar quarter.
For more information, visit gildan.com. — L.M.
