June 19 (Bloomberg) -- Canadian T-shirt-maker Gildan Activewear Inc. agreed to buy Doris Inc., North America’s third-largest marketer of branded ladies legwear for C$110 million ($101.6 million) to expand into women’s intimates.
The deal, which will be paid in cash and funded through a bank facility, could include additional payments of up to C$10 million if sales targets are met, according to a statement from Montreal-based Gildan today.
Doris owns pantyhose brands such as Secret and Silks in Canada and the Kushyfoot brand in the U.S. The purchase will give Gildan, the biggest maker of blank tops for printed T-shirts, a bigger sales platform for its Gildan and Gold Toe brands in Canada. It will also allow it to expand into the basic women’s apparel markets, particularly in the U.S. states where Doris has a presence in food and drug stores.
Gildan shares jumped 3.1 percent at C$62.33 at 11:04 a.m. in Toronto, after touching a record C$62.65.
Doris, also based in Montreal, had revenues of C$95 million for the year ended March 31, about 30 percent from the U.S., and adjusted earnings before interest, taxes, depreciation and amortization of about C$14 million, according to the statement. The acquisition is expected to close in early July 2014 and add to Gildan’s earnings in fiscal 2015.
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