Sportswear manufacturer Gildan Activewear Inc. has entered into an agreement to purchase 100% of the equity of Kentucky Derby Hosiery Co. Inc., based in Hopkinsville, Kentucky. The total purchase price, including the assumption of all of Kentucky Derby's debt, is approximately $45 million. The acquisition is expected to close on or around July 3, 2006, the beginning of the fourth quarter of Gildan's fiscal year.

Kentucky Derby has annual sales in excess of $130 million, primarily consisting of private label programmes for US mass-market retailers. The company intends to utilise Kentucky Derby's experience and distribution with mass-market retailers to enhance its platform to build the Gildan brand in hosiery, underwear and activewear.

Gildan is also currently constructing two new facilities at its Rio Nance manufacturing complex in Honduras, including a facility for the large-scale production of athletic socks, as well as completing the enhancement of its new Dominican Republic textile facility.