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Gildan Activewear Inc. announced a support agreement with Coliseum Capital Management LLC, pursuant to which Coliseum will support Gildan’s full slate of Board nominees at each of the 2024 and 2025 annual meetings of shareholders.
In connection with the agreement, and after meeting with members of Gildan’s board of directors, Coliseum currently intends to make an additional investment in Gildan through market purchases during insider open window periods. Additionally, Chris Shackelton, a co-founder and managing partner of Coliseum, has been invited to join Gildan’s board of directors and has been appointed effective immediately.
“It is a privilege to serve on this board and represent shareholders at this critical juncture,” Shackelton says. “The Coliseum team has long been impressed by Gildan’s business. This agreement is a clear reflection of our conviction in the company’s strategy, leadership, board and bright future. Gildan is remarkably well-positioned, and I look forward to helping the company execute on its growth strategy and drive meaningfully shareholder value creation.”
Donald C. Berg, chair of Gildan’s board of directors says, “We appreciate Coliseum’s long-standing partnership, engagement and alignment to support our mutual goal of enhancing long-term shareholder value. Coliseum’s intent to further invest in Gildan is a testament to its belief in the company’s leadership, board, strategic plan and capability to deliver value.”
“We are delighted to welcome Chris Shackelton to Gildan’s board of directors. He is a highly experienced director and successful investor whom we believe will further strengthen the Board for the benefit of all shareholders,” says Berg.
Berg took the opportunity to correct misinformation about the Board’s succession plans that had been publicly disseminated, “Our succession plan has been a multi-year, careful and deliberate process that included the former CEO at appropriate times throughout the process. It resulted in a well-thought-out rationale for the board’s unanimous decision to appoint Vince Tyra as the new CEO. With the support of one of our largest shareholders, we will continue our outreach to other shareholders to ensure the facts and conclusions surrounding the succession process are transparent, as well as the board’s confidence in Gildan’s trajectory.”