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Private equity firm Sycamore Partners is exploring a bid for Gildan Activewear (NYSE:GIL).
The New York-based PE has discussed financing options with potential lenders, according to a Bloomberg report on Tuesday, which cited people familiar with the matter.
Earlier on Tuesday Gildan Activewear (GIL) confirmed that it had received expressions of interest from various parties regarding a potential transaction, after a media report earlier in the day said that the Canadian clothing maker had got a takeover approach and was being circled by private equity firms.
Gildan (GIL) shares jumped 10% amid the report of takeover interest on Tuesday.
Gildan (GIL) said that its board had formed a special committee to review a confidential non-binding expression of interest to acquire the company. The board then determined that it would also contact other potential bidders.
Gildan (GIL) has a market cap of $5.7 billion and one investment banking source told the Globe & Mail that a potential buyer would likely need to to pay over $7 billion, or more than $42 a share.