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Montreal's Gildan to Acquire Bankrupt Teenage Fashion Icon American Apparel for $66M

Montreal's Gildan to Acquire Bankrupt Teenage Fashion Icon American Apparel for $66M

In August 2016, American Apparel was said to have hired investment bank Houlihan Lockey to explore an exit, as reported by ExitHub at the time. However, by November American Apparel voluntarily filed for Chapter 11 bankruptcy protection once again. The bankruptcy court may require American Apparel to hold an auction for its assets and business under which the proposed acquisition would constitute the initial bid. Consummation of the acquisition would be subject to Gildan being selected as the successful bidder in any such auction and bankruptcy court approval. Gildan will be entitled to a break-up fee and certain expense reimbursements if it does not prevail as the successful bidder at any such auction. The American Apparel brand would represent a complementary addition to Gildan’s portfolio of brands. The acquisition would create revenue growth opportunities by leveraging Gildan’s extensive distribution network in North American and international printwear markets to further increase the brand’s penetration in the faster growing fashion basics segments of these markets. In addition, with American Apparel’s strong heritage as a consumer brand, Gildan said it will evaluate potential wholesale opportunities for leveraging the brand within its Branded Apparel business. Gildan is a leading manufacturer and marketer of quality branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear. The company sells its products under a diversified portfolio of company-owned brands, including the Gildan, Gold Toe, Anvil, Comfort Colors, Alstyle, Secret, Silks, Kushyfoot, Secret Silk, Peds, MediPeds and Therapy Plus brands. Sock products are also distributed through the company’s exclusive U.S. sock license for the Under Armour brand, and a wide array of products is also marketed through a global license for the Mossy Oak brand. The company sells its products through two primary channels of distribution, namely printwear and retail markets. Gildan distributes its products in printwear markets in the U.S., Canada, Europe, Asia-Pacific, and Latin America. In retail markets, the company sells its products to a broad spectrum of retailers primarily in the U.S. and Canada and also manufactures for select leading global athletic and lifestyle consumer brands. Gildan owns and operates vertically-integrated, large-scale manufacturing facilities which are primarily located in Central America, the Caribbean Basin, North America, and Bangladesh, with over 48,000 employees worldwide.]]>

Shahid Khan Buys Four Seasons @FSToronto from Prince Alwaleed for $171M

Shahid Khan Buys Four Seasons @FSToronto from Prince Alwaleed for $171M

Four Seasons Hotel Toronto[/caption] At the end of September 2016, Khan’s net worth was estimated at $6.9 billion by Forbes, which featured him on the magazine’s front cover in 2012. He is the richest person of Pakistan. A naturalized U.S. citizen, Shahid Khan arrived from Pakistan in 1967 at age 16 to study at the University of Illinois. With a B.S. in industrial engineering in 1971, he became Flex-N-Gate’s engineering manager. In 1978, Khan left and with $13,000 in savings and $50,000 from the Small Business Loan Corporation, he created the start-up Bumper Works, which revolutionized the industry through an innovative one-piece bumper design that remains the industry standard. Khan eventually returned to buy Urbana, Illinois-based Flex-N-Gate, which was ranked in 2015 by Automotive News as the 10th-largest original equipment supplier in North America and the 38th largest supplier in the world. Flex-N-Gate employs more than 18,750 people at 55 manufacturing facilities and nine product development and engineering facilities. He acquired the Jacksonville Jaguars from Wayne Weaver in 2012, and the Fulham Football Club from Mohamed Al Fayed in 2013. Khan’s purchase of the Four Seasons Hotel Toronto deepens his business roots in Canada, where Flex-N-Gate operates 11 plants in Ontario. Photo: Shahid Khan, owner of Four Seasons Hotel Toronto, Flex-N-Gate, Jacksonville Jaguars and Fulham Football Club.]]>