Gildan Activewear Inc.’s board has put the T-shirt manufacturer up for sale and private equity funds are circling, escalating a three-month battle for control of one of the country’s largest consumer product companies.received a takeover approach from a potential buyer and responded by giving investment banks RBC Capital Markets and Goldman Sachs Group Inc. a mandate to look for additional bidders, according to two sources.
“After consulting with its legal and financial advisers and considering the interests of Gildan’s shareholders and other stakeholders, the Special Committee determined that it was consistent with its fiduciary duties and in the best interests of Gildan to contact other potential bidders with a view to maximizing the value of any potential transaction.
Gildan currently has a US$5.7-billion market capitalization. One investment banking source said a potential buyer would likely need to pay over US$7-billion, or more than US$42 per share, to acquire the company. The Gildan board has also hired investment bank Canaccord Genuity Group Inc. to advise an independent committee of directors on whether any potential bid represents fair value for shareholder, the sources said.