Gildan Activewear Inc. has signed a definitive agreement to acquire 100% of the equity interest of Peds Legwear Inc. (Peds), a private Canadian company with a North Carolina manufacturing and distribution centre that opened last year for a total cash consideration of $55 million.

The acquisition is expected to create revenue growth opportunities by leveraging Gildan’s existing customer relationships to broaden the channels of distribution for the Peds and MediPeds brands and by extending these brands into Gildan’s other product categories.

Peds is a marketer of quality foot apparel and legwear products, including ladies no-show liners, socks and sheer, and therapeutic hosiery sold mainly under the Peds and MediPeds brands to U.S. and Canadian retailers.

The company currently generates annual sales of approximately $80 million supported by sourced production and a company-owned state-of-the-art manufacturing and distribution facility in Hildebran, North Carolina.

Glenn Chamandy, President and CEO of Gildan said that 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..

Michael Penner, Chief Executive Officer, Peds Legwear said that Gildan was originally founded 80 years ago in Quebec and they are proud to have successfully built Peds and MediPeds into such strong brands.

Gildan has had great success over the years building its manufacturing leadership and strong portfolio of brands and they feel it is well- positioned to take the Peds brands to new heights.

Gildan owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America and the Caribbean.