Gildan (asi/56842), the sixth-largest supplier in the promotional products industry, has acquired 100% of the equity interests of Phoenix Sandford LLC, the parent company of Frontier Yarns. Gildan paid $168 million in cash.

Glenn Chamandy, Gildan

Montreal-headquartered Gildan said the acquisition will enable it to build on its global vertically integrated supply chain through further internalizing yarn production. Additionally, Gildan said the acquisition will support yarn availability for the company’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” said Glenn 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.”  

Frontier makes 100% cotton, polyester, and cotton blend yarns that are primarily manufactured on open end and vortex (MVS) spinning technology. The yarn operations of Frontier acquired by Gildan include four facilities located in North Carolina that employ approximately 800 employees. During 2021, approximately 40% of Frontier’s production was dedicated to yarn sold to Gildan.

“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,” said Robin Perkins, CEO of Frontier Yarns.

Based on estimated 2020 promotional products revenue of $413.1 million, Gildan ranked sixth on Counselor’s most recent list of the largest suppliers in the industry.