Montreal, Canada-based Gildan Activewear Inc. announces it has acquired 100% of the equity interests of Phoenix Sanford LLC, the parent company of Frontier Yarns, for a total cash consideration of around $168 million.
Frontier Yarns is a producer of 100% cotton, polyester, and cotton blend yarns primarily manufactured on open-end and vortex (MVS) spinning technology. The Frontier yarn operations acquired by Gildan include four facilities located in North Carolina, employing approximately 800 employees. In 2021, about 40% of Frontier’s production was dedicated to yarn sold to Gildan for textile manufacturing in Central America and the Caribbean.
According to a press release on the announcement, the acquisition of Frontier allows Gildan to build on its global vertically integrated supply chain through further internalizing yarn production. In addition, it will support yarn availability for Gildan’s textile capacity expansion plans in Central America and the Caribbean.
“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,” says Glenn J. Chamandy, president and CEO of Gildan. “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.”
“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,” adds Robin Perkins, CEO of Frontier Yarns. “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.”