Gildan snaps up Peds Legwear
Montreal-based clothing manufacturer Gildan Activewear Inc. has added another established name to its portfolio, purchasing Peds Legwear Inc. for US$55 million.
Peds, formerly known as Richelieu Group, has roots in Quebec going back 80 years and still is based in Montreal, though the bulk of its current manufacturing is at its plant in North Carolina. Annual sales in Canada and the U.S. total about $80 million.
It’s headed by Michael Penner, the sitting chairman of the board of Hydro-Québec.
“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,” Penner said in a statement.
“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 president Glenn Chamandy.
The company also recently bought Alstyle Apparel, LLC, which makes T-shirts and fleece activewear with a textile plant and sewing operations in Mexico as well as distribution centres in the United States, Canada and Mexico.
Gildan’s profit fell to US$94.7 million or 40 cents per share in the quarter ended July 3, from US$99.4 million or 41 cents per share a year earlier. Adjusted earnings also fell to $96.4 million or 41 cents per share from $102.6 million or 42 cents per share. Net sales slipped 3.5 per cent to US$688.9 million, from US$714.2 million, due to a combination of factors.