Board members at Canadian clothing company Gildan Activewear Inc. are exploring a potential sale of the clothing maker.
Shares of the Canadian manufacturer jumped by more than 10% on news of the potential buyout.
The Montreal, Canada-based Gildan has assembled a special board committee to evaluate its options, Simon Beauchemin, a Gildan spokesperson said in a statement to Bloomberg. The company has “several” potential buyers, he added.
While deliberations are ongoing, there is no guarantee that a deal will be made.
In the meantime, Gildan Activewear is turning to advice from firms including Goldman Sachs, RBC Capital Markets and Canaccord Genuity Group, a person with knowledge of the situation who spoke to the publication, said.
The potential buyers remain anonymous, but a number “expressed an interest,” of a “potential friendly transaction with Gildan.”
Talks of a deal also come at a time when the company’s board has been going tit-for-tat with investors over the ousting of its chief executive officer Glenn Chamandy in December.
On May 28, the company plans to hold its annual shareholder meeting to discuss whether it will reinstate Chamandy as CEO and replace a majority of its board members.
Gildan Activewear is the owner of once beloved North American retailer American Apparel.