Apparel maker Gildan Activewear is building on its position in ladies' wear with its just-announced $55m acquisition of Peds Legwear.

Peds makes foot apparel and legwear products, including ladies' no-show liners, socks and sheer, and therapeutic hosiery sold mainly under the Peds and MediPeds brands to US and Canadian retailers.

The company currently generates annual sales of $80m, supported by sourced production and a company-owned state-of-the-art manufacturing and distribution facility in Hildebran, North Carolina.

Glenn Chamandy, president and CEO of Gildan, says: "The Peds brand comes with a strong heritage, particularly in the ladies' category, and is a good complementary addition to Gildan's growing portfolio of brands" – which include Gildan, Gold Toe, Anvil, Comfort Colors, Alstyle, Secret, Silks, Kushyfoot, Secret Silky and Therapy Plus.

The acquisition is subject to customary closing conditions and is expected to close before the end of August 2016.

Opportunities for revenue growth are seen from broadening channels of distribution and by extending the new brands into Gildan's other product categories. In addition, Peds' current distribution into the footwear channel should also provide broader access for Gildan's brands and product portfolio.

Separately, Montreal, Canada based Gildan yesterday (27 July) said falling sales in its printwear and branded apparel businesses contributed to a 4.7% drop in second-quarter profit. It also lowered the upper end of its earnings guidance for the year.

Gildan Activewear Q2 profit slips on falling sales

However, sales were lifted by $19.5m from its acquisition of T-shirt maker Alstyle Apparel earlier this year.

Gildan moves into Mexico with US$110m Alstyle Apparel buy