The Caisse de dépôt et placement du Québec endorsed Gildan’s beleaguered board of directors and CEO Vince Tyra, who faces an activist challenge from asset manager Browning West
$200-million. The asset manager with a mandate to contribute to the province’s economic development also ensured it will be a kingmaker, with the fate of a leading global clothing manufacturer hanging in the balance.The fund manager also signalled it intends to play a continuing role in the company if – and this is a big if – Gildan gets sold to one of the U.S. private-equity funds that have been circling the company since early this year.
In return, the Caisse endorsed Gildan’s beleaguered board of directors and chief executive officer Vince Tyra, who faces an activist challenge from asset manager Browning West. The Los Angeles-based fund wants to elect its own slate of directors and put Gildan co-founder and former CEO Glenn Chamandy back in the driver’s seat.
Along with an endorsement of the current Gildan board, the Caisse’s $200-million loan signals the fund manager wants a role in a potential takeover. It’s worth noting Browning West and several significant shareholders in Gildan say the wholesale rejigging of the board that played out in late April points to a failed auction.
Over the past year, higher interest rates and tighter credit markets have crimped private-equity deal-making. Leverage buyout loans, at attractive rates, are increasingly hard to find. Any fund manager interested in snapping up Gildan would welcome a deep-pocketed backer such as the Caisse, if that buyer can get comfy with its Quebec-first focus.
Caisse Company Board Gildan Loan Fund Caisse Pershing Square Capital Management Vince Tyra Nelson Peltz
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