MONTREAL – Gildan Activewear Inc. says it will pay US$55 million cash to buy Peds Legwear Inc., a private Canadian company with a North Carolina manufacturing and distribution centre that opened last year.
Peds specializes in a style of short casual sock that covers the foot but not the ankle, as well as leggings and short socks designed to address health issues surrounding diabetes and poor circulation.
Gildan says the Peds product lineup will complement its own products, which include athletic and dress socks, underwear and T-shirts.
It added that it expects the purchase to close before the end of August.
The Montreal-based 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.