Gildan Activewear acquires US yarn producer Frontier Yarns for $168m
Gildan Activewear, a Canadian clothing company, has acquired Phoenix Sanford, the parent company of Frontier Yarns, for around $168 million in cash.
The acquisition was carried out through a fully-owned subsidiary of Gildan Activewear.
Frontier Yarns, which is based in Sanford, North Carolina, is engaged in producing 100% cotton, polyester, and cotton blend yarns that are manufactured mainly on open end and vortex (MVS) spinning technology.
The yarn operations of the company acquired by Gildan Activewear include four facilities across North Carolina that employ nearly 800 people.
During the current year, almost 40% of the production at Frontier Yarns was used for yarn sold to Gildan Activewear for textile manufacturing in Central America as well as the Caribbean.
Robin Perkins — CEO of Frontier Yarns said: “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.”
Gildan Activewear said that the acquisition of Frontier Yarns will enable it to consolidate on its global vertically integrated supply chain by further internalizing the production of yarn. Additionally, the acquisition will support the availability of yarn for the textile capacity expansion plans of the Canadian clothing company in Central America and the Caribbean.
Glenn J. Chamandy — President and CEO of Gildan Activewear 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.”