GIL

Ararat Capital Management's Stake Reduction: Connecticut-based Ararat Capital Management sold 137,548 shares of Gildan Activewear in Q3, reducing its position by approximately $4.9 million, leaving it with 217,685 shares valued at $12.6 million.

Gildan Activewear's Growth and Performance: Gildan's third-quarter revenue reached a record $911 million, although net earnings fell to $120.2 million, indicating cyclical challenges despite the company's recent acquisition of HanesBrands, which is expected to enhance its market position.

Strategic Recalibration: The reduction in Ararat's stake appears to be a strategic recalibration rather than a loss of confidence, as Gildan transitions into a larger global player with improved operational efficiencies and cost synergies from the HanesBrands acquisition.

Market Context: Gildan's shares have increased by about 17% over the past year, outperforming the S&P 500, which rose nearly 13%, reflecting a positive market sentiment towards the company's evolving business model.

Acquisition Overview: Gildan Activewear Inc. has completed its acquisition of HanesBrands, significantly expanding its scale and brand portfolio, positioning itself as a major player in the global activewear and innerwear market.

Integration Strategy: The post-acquisition focus will be on a smooth integration process that aligns operations and systems, aiming for at least $200 million in annual cost synergies through enhanced efficiencies and improved supply chain management.

Financial Structure: The acquisition was financed through a combination of stock, cash, and loans, allowing Gildan to address HanesBrands' debt while avoiding over-leveraging its balance sheet.

Market Positioning: Gildan's strategy aims to leverage its low-cost manufacturing model alongside HanesBrands' premium brands to drive revenue growth and innovation, enhancing shareholder returns in a competitive market.