Texas-based Ennis, Inc. has announced that it has completed the previously announced sale of Alstyle Apparel, LLC and its subsidiaries, which constituted the company's apparel division to Gildan Activewear on May 25, 2016.
The Alstyle Transaction was completed for an all-cash purchase price of $109,354,066 (after giving effect to an adjustment for estimated working capital as of April 30, 2016, which is subject to post-closing adjustment as of the closing date), subject to customary indemnification arrangements and the other terms of such agreement, Ennis, Inc. said in a press release.
Concurrently with the closing, Ennis and Gildan entered into a transition services agreement, pursuant to which the Company will provide transition assistance to Gildan for certain administrative, financial, human resource and information technology matters, and a sublease agreement, pursuant to which Ennis will sublease from Gildan a portion of certain property located in Anaheim, California that is leased by the Apparel Division.
Keith Walters, the Company's President, Chief Executive Officer and Chairman of the Board, commented by stating, “We are pleased that we have been able to close this transaction so quickly after its announcement in early May. Beginning in the summer of 2015, it has been a time consuming process to affect the sale of this asset, and its completion will allow management to focus on the Print segment and our stated goal of acquiring other printing businesses that meet our criteria.”
Alstyle manufactures and markets activewear products such as t-shirts and fleece, the majority of which are sold under the Alstyle brand. The acquisition of Alstyle expands Gildan's penetration in activewear and printwear markets in the US, Canada and Mexico. The acquisition will also allow Gildan to enhance its competitive positioning in the Mexican printwear and retail markets. (SH)
Fibre2Fashion News Desk – India