Montréal-based Gildan Activewear says it has signed an agreement to acquire Comfort Colors, a garment-dyed basic T-shirt and sweatshirt company, for $100 million.
Comfort Colors, based in Northfield, Vermont, sources shirts from vendors like Gildan and dyes them; the company specializes in soft washes and distressed looks.
“The acquisition of Comfort Colors reinforces Gildan’s strategy to increase its penetration of the growing fashion basics segment of the North American printwear market,” Gildan said in a statement. “Comfort Colors has generated strong annual sales growth over the last four years reflecting the brand’s fast growing consumer appeal. During the 12-month period ended December 31, 2014, Comfort Colors generated net sales of approximately $95 million, or $55 million after eliminating Gildan sales of undecorated shirts to Comfort Colors.”
Separately, Gildan reported a fourth-quarter loss of $41.2 million with net sales down 13.5 percent to $390.6 million.