Gildan Activewear is taking over a major sock company.
The family apparel manufacturer on Wednesday announced it has acquired Peds Legwear Inc. for $55 million in cash. The deal is expected to close next month.
“This company was originally founded 80 years ago in Quebec and we are proud to have successfully built Peds and MediPeds into such strong brands,” Peds Legwear chief executive officer Michael Penner said. “Gildan has had great success over the years building its manufacturing leadership and strong portfolio of brands and we feel it is well positioned to take the Peds brands to new heights.”
As a marketer of socks and other legwear products, Peds’ offering includes ladies no-show liners, socks, sheers and therapeutic hosiery under its Peds and MediPeds brands, which sell at many North American retailers. Currently, the company generates sales of approximately $80 million annually and it operates out of its manufacturing and distribution center in Hildebran, North Carolina.
“The Peds brand comes with a strong heritage, particularly in the ladies category, and is a good complementary addition to Gildan’s growing portfolio of brands,” said Gildan CEO Glenn Chamandy.
Gildan will leverage its existing customer relationships to broaden both distribution channels and product categories for the Peds and MediPeds brands, thereby creating revenue growth opportunities for both parties.