photo-ianniello/iStock via Getty Images
Updates to add Gildan confirmation
Gildan Activewear (NYSE: GIL) confirmed on Tuesday that it had received expressions of interest from several parties regarding a potential transaction, after a media report earlier in the day claimed that the Canadian apparel maker had took an acquisition approach and was surrounded by private equity firms.
U.S.-listed shares of Gildan (GIL) soared after the report and then ended 10.5% more at $37.34. they were up 0.7% after hours.
Gildan (GIL) said its board of directors has formed a special committee to review a confidential, non-binding expression of interest to acquire the company. The council then decided to also contact other potential bidders.
“The Special Committee, with the assistance of its financial advisors, has conducted targeted contacts with a small number of potential reliable counterparties. Many of these counterparties have expressed interest in considering a potential friendly transaction with Gildan (GIL),” he said GIL said in a statement. .
“There can be no assurance that any transaction will result from these discussions and Gildan (GIL) will continue to provide appropriate updates,” the company added.
A Globe & Mail report in the early afternoon said Gildan’s (GIL) board of directors had put the company up for sale, citing people familiar with the matter. Gildan responded to the approach and instructed RBC Capital Markets and Goldman Sachs to look for other potential buyers.
Gildan (GIL) told Bloomberg it has “several” potential buyers interested in a friendly takeover.
“The special committee, with the assistance of its financial advisors, conducted targeted outreach to a small number of potential creditworthy counterparties,” a Gildan spokesperson told Bloomberg. “Many of these counterparties have expressed interest in considering a potential friendly transaction with Gildan.”
Gildan (GIL) has a market capitalization of $5.7 billion, and an investment banking source told the Globe & Mail that a potential buyer would like to pay more than $7 billion, or more than $42 per share.
A potential sale comes after Gildan (GIL) came under pressure from shareholders including Browning West and Turtle Creek Asset Management following the removal of co-founder Glenn Chamandy as CEO in December.