Browning West’s Slate of Highly Qualified Director Candidates Releases Five-Pillar Plan to Enhance Shareholder Value at Gildan Activewear

Rhea-AI Summary

Browning West, LP, a shareholder of Gildan Activewear Inc. (GIL), proposes a five-pillar plan to boost Gildan's share price to over $60 USD by 2025 and over $100 USD in the next five years. The slate includes experienced directors aiming to enhance shareholder value. The proposed Chair and CEO have strong backgrounds in value creation and successful succession planning. Browning West seeks to elect eight new directors at the upcoming Annual Meeting of Shareholders.

Insights

Financial Analyst

The announcement by Browning West concerning Gildan Activewear Inc. highlights a strategic plan aimed at significantly increasing the company's share price. The ambitious targets set forth, over $60 USD by the end of 2025 and more than $100 USD in the subsequent five years, are predicated on the successful implementation of a five-pillar plan. The financial implications of such a plan are substantial, as achieving these targets would represent a considerable appreciation from current levels.

From a valuation perspective, the proposal suggests that the intrinsic value of Gildan is currently underrepresented in the market. A successful operational overhaul could unlock shareholder value, but it is essential to scrutinize the feasibility of the plan, the market conditions and the company's competitive positioning. The proposed increase in share price also implies a confidence in the slate's ability to enhance operational efficiency and market share, which could lead to increased earnings and, subsequently, a higher price-to-earnings ratio.

Investors should consider the risks associated with such a transformative strategy, including execution risk, market volatility and potential resistance from existing management. The track record of the proposed slate in value creation and management transitions will be a critical factor in assessing the likelihood of realizing these projections.

Market Research Analyst

The global apparel industry is characterized by its competitive nature and sensitivity to consumer trends, economic cycles and supply chain dynamics. Browning West's plan for Gildan encompasses not only financial targets but also suggests strategic maneuvers within a complex industry. The mention of 'relevant global apparel industry experience' among the director candidates indicates an emphasis on leveraging industry-specific knowledge to navigate market challenges and capitalize on growth opportunities.

Understanding consumer behavior, sustainability trends and technological advancements in apparel manufacturing will be vital in achieving the proposed share price increases. The ability to adapt to the fast-paced changes in fashion and consumer preferences, while maintaining cost efficiencies in a vertically integrated business model, could be pivotal in outperforming competitors and gaining market share.

Additionally, the proposed chair's experience in value creation and the prospective CEO's track record at Gildan suggest a deep understanding of the company's operations, which may reassure investors about the practicality of the strategic plan. However, the market's reception to these changes will depend on the clarity of the plan's execution and the perceived credibility of the new leadership.

Corporate Governance Expert

The proposed changes to Gildan's Board of Directors and the emphasis on financial, governance and industry experience among the candidates, underscore the importance of robust corporate governance in driving company performance. The slate's independence and the collective expertise are intended to instill confidence in shareholders that the company is poised for a strategic realignment that could enhance shareholder value.

Effective corporate governance can lead to better decision-making, risk management and adherence to regulatory requirements, which in turn can impact investor perceptions and the company's stock price. The slate's experience in succession planning also signals a forward-looking approach to leadership continuity, which is important for maintaining strategic momentum and investor trust.

However, the transition to a new board and management team can introduce uncertainty and the ability of the proposed slate to work cohesively and effectively will be essential in achieving the ambitious goals set forth. Shareholders will need to weigh the potential benefits of the proposed changes against the risks of disruption during the transition period.

Five-Pillar Plan is Expected to Increase Gildan’s Share Price to More Than $60 USD by the End of 2025 and More Than $100 USD Over the Next Five Years

Highly Qualified Slate Includes Directors with Extensive Financial, Governance, and Relevant Global Apparel Industry Experience, as Well as Strong Track Records of Value Creation and Successful Succession Planning Expertise

Proposed Chair Michael Kneeland’s Experience as Chair and Former CEO of United Rentals, Inc. Included Overseeing a Successful Management Transition and Creating Over $44 Billion USD in Value for Shareholders Over His Tenure

Proposed CEO Glenn Chamandy Delivered a Nearly 100-Fold Total Return for Gildan Shareholders During His Tenure, Possesses an Unrivaled Knowledge of the Company’s Low-Cost, Vertically Integrated Business Model, and Has the Public Support of Shareholders Representing Over 35% of Gildan’s Outstanding Shares

Visit www.SuperchargeGildan.com to Download a Copy of the Operating Plan, Sign-Up for Important Campaign Updates, and Obtain Information on How to Support Browning West’s Slate at the May 28^th Annual Meeting

LOS ANGELES--(BUSINESS WIRE)-- Browning West, LP (together with its affiliates, “Browning West” or “we”), which is a long-term shareholder of Gildan Activewear Inc. (NYSE: GIL) (TSX: GIL) (“Gildan” or the “Company”) and beneficially owns approximately 5.0% of the Company’s outstanding shares, today announced that its slate of director candidates released a presentation detailing its five-pillar plan to increase Gildan’s share price to more than $60 USD by the end of 2025 and more than $100 USD within the next five years. Browning West’s slate is releasing its operating plan now so that shareholders can understand the Company’s strong standalone prospects under our slate’s leadership relative to an outcome that likely undervalues the Company under the current Board of Directors’ reactionary sale process.

As a reminder, Browning West is seeking to elect eight highly qualified and independent director candidates to Gildan’s Board of Directors at the Annual Meeting of Shareholders on May 28, 2024. Browning West’s director candidates possess strong track records of value creation, expertise in successful succession planning, relevant industry and governance experience, as well as proven management and board service pedigrees in Canada and the U.S.

Shareholders are encouraged to visit www.SuperchargeGildan.com to download a copy of the operating plan and sign up for important campaign updates. Visit SEDAR+ (www.sedarplus.ca) to review a copy of Browning West’s information circular and other relevant materials.

Disclaimer for Forward-Looking Information

Certain information in this news release may constitute “forward-looking information” within the meaning of applicable securities legislation. Forward-looking statements and information generally can be identified by the use of forward-looking terminology such as “outlook,” “objective,” “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “plans,” “continue,” or similar expressions suggesting future outcomes or events. Forward-looking information in this news release may include, but is not limited to, statements of Browning West regarding (i) how Browning West intends to exercise its legal rights as a shareholder of the Company, and (ii) its plans to make changes at the Board and management of the Company.

Although Browning West believes that the expectations reflected in any such forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that (i) the Company may use tactics to thwart the rights of Browning West as a shareholder and (ii) the actions being proposed and the changes being demanded by Browning West, may not take place for any reason whatsoever. Except as required by law, Browning West does not intend to update these forward-looking statements.

Advisors

Olshan Frome Wolosky LLP is serving as legal counsel, Goodmans LLP is serving as Canadian legal counsel, and IMK is serving as Quebec legal counsel. Longacre Square Partners is serving as strategic advisor and Pelican PR is serving as public relations advisor. Carson Proxy is serving as proxy advisor.

About Browning West, LP

Browning West is an independent investment partnership based in Los Angeles, California. The partnership employs a concentrated, long-term, and fundamental approach to investing and focuses primarily on investments in North America and Western Europe.

Browning West seeks to identify and invest in a limited number of high-quality businesses and to hold these investments for multiple years. Backed by a select group of leading foundations, family offices, and university endowments, Browning West’s unique capital base allows it to focus on long-term value creation at its portfolio companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240401732335/en/

Browning West

info@browningwest.com

310-984-7600



Longacre Square Partners

Charlotte Kiaie / Scott Deveau, 646-386-0091

browningwest@longacresquare.com



Pelican PR

Lyla Radmanovich / Mélanie Tardif, 514-845-8763

media@rppelican.ca



Carson Proxy

Christine Carson, 416-804-0825

christine@carsonproxy.com

Source: Browning West, LP

FAQ

What is Browning West's plan to increase Gildan's share price by 2025?

Browning West aims to implement a five-pillar plan to raise Gildan's share price to more than $60 USD by the end of 2025 and over $100 USD within the next five years.

Who is proposed as the Chair of Gildan?

Michael Kneeland, with experience as Chair and former CEO of United Rentals, Inc., is proposed as the Chair of Gildan.

Who is proposed as the CEO of Gildan?

Glenn Chamandy, who delivered a nearly 100-fold total return for Gildan shareholders during his tenure, is proposed as the CEO of Gildan.

How much value did Michael Kneeland create for shareholders during his tenure at United Rentals, Inc.?

Michael Kneeland created over $44 billion USD in value for shareholders during his tenure at United Rentals, Inc.

What percentage of Gildan's outstanding shares do shareholders supporting Glenn Chamandy represent?

Shareholders supporting Glenn Chamandy represent over 35% of Gildan's outstanding shares.