Gildan Activewear Inc. (GIL: TSX and NYSE) (“Gildan” or “the
Company”) today announced a support agreement with Coliseum Capital
Management, LLC (“Coliseum”), pursuant to which Coliseum will
support Gildan’s full slate of Board nominees at each of the 2024
and 2025 Annual Meetings of Shareholders. In connection with the
agreement, and after meeting with members of Gildan’s Board of
Directors, Coliseum currently intends to make an additional
investment in Gildan through market purchases during insider open
window periods. Additionally, Chris Shackelton, a Co-Founder and
Managing Partner of Coliseum has been invited to join Gildan’s
Board of Directors and has been appointed effective today.
Chris Shackelton said, “It is a privilege to
serve on this Board and represent shareholders at this critical
juncture. The Coliseum team has long been impressed by Gildan’s
business. This agreement is a clear reflection of our conviction in
the Company’s strategy, leadership, board and bright future. Gildan
is remarkably well-positioned, and I look forward to helping the
Company execute on its growth strategy and drive meaningfully
shareholder value creation.”
Donald C. Berg, Chair of Gildan’s Board of
Directors said, “We appreciate Coliseum’s long-standing
partnership, engagement, and alignment to support our mutual goal
of enhancing long-term shareholder value. Coliseum’s intent to
further invest in Gildan is a testament to its belief in the
Company’s leadership, board, strategic plan and capability to
deliver value.”
“We are delighted to welcome Chris Shackelton to
Gildan’s Board of Directors. He is a highly experienced director
and successful investor whom we believe will further strengthen the
Board for the benefit of all shareholders,” said Mr.
Berg.
Mr. Berg took the opportunity to correct
misinformation about the Board’s succession plans that had been
publicly disseminated, “Our succession plan has been a
multi-year, careful, and deliberate process which
included the former CEO at appropriate times throughout the
process. It resulted in a well thought out rationale for the
Board’s unanimous decision to appoint Vince Tyra as the new CEO.
With the support of one of our largest shareholders, we will
continue our outreach to other shareholders to ensure the facts and
conclusions surrounding the succession process are transparent, as
well as the Board’s confidence in Gildan’s trajectory,” concluded
Mr. Berg.
Coliseum has agreed to abide by certain
customary standstill and voting commitments in connection with the
agreement. A copy of the agreement will be filed on SEDAR+
at www.sedarplus.ca.
About Christopher S.
Shackelton
Christopher S. Shackelton is a Managing Partner
of Coliseum Capital Management, LLC, which he Co-Founded in 2005.
He has served on the boards of eight public companies. He currently
serves as Chairman of both ModivCare Inc. and Lazydays Holdings
Inc., as well as a director on the board of Universal Technical
Institute Inc. Previously he was a director on the boards of LHC
Group Inc., BioScrip, Inc., Advanced Emissions Solutions, Inc.,
Rural/Metro Corp., and Interstate Hotels & Resorts, Inc.
Additionally, he currently serves as a Trustee for several
charitable not-for-profit organizations. Earlier in his career, he
held positions at Morgan Stanley & Co. and Watershed Asset
Management LLC. He is a graduate of Yale College.
Caution Concerning Forward-Looking
Statements
Certain statements included in this press
release constitute “forward-looking statements” within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995 and
Canadian securities legislation and regulations and are subject to
important risks, uncertainties, and assumptions. This
forward-looking information includes, amongst others, information
with respect to the support agreement entered into with Coliseum
and the expected benefits to the Company and its shareholders.
Forward-looking statements generally can be identified by the use
of conditional or forward-looking terminology such as “may”,
“will”, “expect”, “intend”, “estimate”, “project”, “assume”,
“anticipate”, “plan”, “foresee”, “believe”, or “continue”, or the
negatives of these terms or variations of them or similar
terminology. All forward-looking information is based on our
beliefs as well as assumptions based on information available at
the time the assumption was made and on our experience and
perception of historical trends, current conditions, results and
expected future developments, as well as other factors deemed
appropriate in the circumstances.
Forward-looking information is inherently
uncertain and the results or events predicted in such
forward-looking information may differ materially from actual
results or events. Material factors, which could cause actual
results or events to differ materially from a conclusion or
projection in such forward-looking information, include, but are
not limited to changes in general economic and financial conditions
globally or in one or more of the markets we serve and our ability
to implement our growth strategies and plans.
There can be no assurance that the expectations
represented by our forward-looking statements will prove to be
correct. The purpose of the forward-looking statements is to
provide the reader with a description of management’s expectations
regarding the Company’s future financial performance and may not be
appropriate for other purposes. Furthermore, unless otherwise
stated, the forward-looking statements contained in this press
release are made as of the date hereof, and we do not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events, or otherwise unless required by applicable
legislation or regulation. The forward-looking statements contained
in this press release are expressly qualified by this cautionary
statement.
About Gildan
Gildan is a leading manufacturer of everyday
basic apparel. The Company’s product offering includes activewear,
underwear and socks, sold to a broad range of customers, including
wholesale distributors, screenprinters or embellishers, as well as
to retailers that sell to consumers through their physical stores
and/or e-commerce platforms and to global lifestyle brand
companies. The Company markets its products in North America,
Europe, Asia Pacific, and Latin America, under a diversified
portfolio of Company-owned brands including Gildan®, American
Apparel®, Comfort Colors®, GOLDTOE®, Peds®, in addition to the
Under Armour® brand through a sock licensing agreement providing
exclusive distribution rights in the United States and Canada.
Gildan owns and operates vertically integrated,
large-scale manufacturing facilities which are primarily located in
Central America, the Caribbean, North America, and Bangladesh.
Gildan operates with a strong commitment to industry-leading
labour, environmental and governance practices throughout its
supply chain in accordance with its comprehensive ESG program
embedded in the Company's long-term business strategy. More
information about the Company and its ESG practices and initiatives
can be found at www.gildancorp.com.
Investor inquiries: Jessy Hayem, CFA
Vice-President, Head of Investor Relations (514) 744-8511
jhayem@gildan.com |
Media inquiries:Genevieve GosselinDirector, Global
Communications and Corporate Marketing(514)
343-8814ggosselin@gildan.com |
Gildan Activewear (TSX:GIL)
Historical Stock Chart
From Apr 2024 to May 2024
Gildan Activewear (TSX:GIL)
Historical Stock Chart
From May 2023 to May 2024