Gildan Announces Agreement to Acquire Gold Toe Moretz for Approximately $350 Million
Gold Toe Moretz's senior management team, including John Moretz, chairman and chief innovation officer, and Steve Lineberger, president and CEO, have committed to continue their careers with Gildan Activewear.
The acquisition will more than double Gildan Activewear's current revenues from the sale of socks and will significantly expand and diversify its customer base and channels of distribution within the U.S. retail market. Revenues reported by Gold Toe Moretz for the year ended December 31, 2010 amounted to over $280 million, and adjusted earnings for the same period amounted to $48.6 million. In Gildan Activewear's Q1 earnings report in February, the company reported a $6.2 million revenue increase over the same period in the previous year, but a 9.3 percent decline in the sale of socks.