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Private equity firm Sycamore Partners is considering a bid for Gildan Activewear (NYSE: GIL).
The New York-based PE has been discussing financing options with potential lenders, according to a Bloomberg report on Tuesday, citing people familiar with the matter.
Last Tuesday Gildan Sportswear (GIL) confirmed that it had received expressions of interest from various quarters regarding a potential transaction, after a media report earlier in the day said the Canadian apparel maker had taken an acquisition approach and was surrounded by private equity firms.
Shares of Gildan (GIL) jumped 10% following news of takeover interest on Tuesday.
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.
Gildan (GIL) has a market capitalization of $5.7 billion, and an investment banking source told the Globe & Mail that a potential buyer would likely have to pay more than $7 billion, or more than $42 per share.