Browning West LP Amends 13D on Gildan Activewear, Signals Continued Activism

TL;DR

**Activist investor Browning West is still on Gildan's case, expect more pressure!**

AI Summary

Browning West LP, an activist investor, filed an Amendment No. 1 to its Schedule 13D on January 10, 2024, regarding its ownership in Gildan Activewear Inc. This filing updates their previous disclosure, indicating continued active engagement with Gildan. This matters to investors because Browning West LP is known for pushing for strategic changes, which could lead to significant shifts in Gildan's management or operations, potentially impacting the stock price.

Why It Matters

This filing signals that Browning West LP is maintaining its activist stance, which could lead to further pressure on Gildan's board and management, potentially influencing future strategic decisions and stock performance.

Risk Assessment

Risk Level: medium — Activist investor involvement can create volatility and uncertainty around a company's future direction, posing a medium risk for current and prospective shareholders.

Analyst Insight

Investors should monitor future filings from Browning West LP and Gildan Activewear Inc. closely, as continued activist pressure could lead to significant corporate actions or changes in leadership, impacting investment thesis.

Key Numbers

• 375916103 — CUSIP Number (Identifies Gildan Activewear Inc.'s Common Shares)

Key Players & Entities

• Browning West LP (company) — the activist investor filing the SC 13D/A
• Gildan Activewear Inc. (company) — the subject company in which Browning West LP holds shares
• Usman Nabi (person) — contact person for Browning West LP
• Andrew M. Freedman (person) — attorney for Browning West LP from Olshan Frome Wolosky LLP
• January 9, 2023 (date) — Date of Event Which Requires Filing of This Statement
• January 10, 2024 (date) — Filing date of the SC 13D/A

Forward-Looking Statements

• Browning West LP will continue to advocate for changes in Gildan Activewear's management or strategic direction. (Gildan Activewear Inc.) — high confidence, target: Q2 2024
• Gildan Activewear's stock price may experience increased volatility due to ongoing activist investor pressure. (Gildan Activewear Inc.) — medium confidence, target: Q3 2024

FAQ

Key Financial Figures

• $50 billion — “United Rentals”), a nearly $50 billion USD enterprise value equipment rental b
• $14 billion — lue equipment rental business with over $14 billion USD of revenue and nearly $7 billion US
• $7 billion — r $14 billion USD of revenue and nearly $7 billion USD of EBITDA. Mr. Kneeland became Chai
• $35 billion — er the past 16 years, generating nearly $35 billion USD in value spanning Mr. Kneeland&rsqu
• $10 billion — CEO, United Rentals also invested over $10 billion USD in net capital expenditures and nea
• $8 billion — in net capital expenditures and nearly $8 billion USD in acquisitions which drove signifi
• $2 billion — manufacturing business, investing over $2 billion USD of capital expenditures over the pa
• $3 billion — ersaw the Issuer’s growth to over $3 billion USD of annual sales and over $700 milli
• $700 million — $3 billion USD of annual sales and over $700 million USD of EBITDA. He led the expansion of
• $159 billion — r. Chandlee spent 18 years at Nike, the $159 billion USD enterprise value global athletic fo
• $31 billion — cer of Fanatics Commerce. Fanatics is a $31 billion USD enterprise value digital sports pla
• $4.5 billion — terprise value increased nearly 7x from $4.5 billion USD to $31 billion USD. During Mr. Chan
• $94 billion — ay (“Canadian National”), a $94 billion USD enterprise value business based in
• $17 billion — an National has generated approximately $17 billion USD in free cash flow, invested approxi
• $16 billion — free cash flow, invested approximately $16 billion USD in capital expenditures, repurchase

Filing Documents

• sc13da112418013_01092024.htm (SC 13D/A) — 110KB
• ex991to13da112418013_010924.htm (EX-99.1) — 79KB
• image_001.jpg (GRAPHIC) — 2KB
• 0001193805-24-000040.txt ( ) — 194KB

Purpose of Transaction

Item 4. Purpose of Transaction .

is hereby amended

Item 4 is hereby amended to add the following: The Reporting Persons have recently learned that the Board intends to employ extreme delay tactics by postponing its next annual meeting and any requisitioned special meeting to as late as Fall 2024 and deploy baseless litigation tactics against its own shareholders. The Reporting Persons believe these disappointing tactics are designed to divert focus from substantive issues while imposing significant costs and hurdles on concerned shareholders so they abandon their campaigns to protect shareholder value. The Reporting Persons are not deterred by such tactics, and will continue to exert their rights and hold the Board accountable for its failures. Finally, the Reporting Persons are concerned that the Board may bring forward Vincent Tyra’s start date. Such a move would highlight the Board’s reckless disregard of shareholders who have clearly rejected Mr. Tyra and his weak credentials. Based on the latest disappointing information, the Reporting Persons note that the Board has forced their hand such that the Reporting Persons no longer believe that a minority slate is sufficient to prevent the further destruction of shareholder value and achieve the Reporting Persons’ key objectives of: (i) appointing Michael Kneeland as independent, non-executive Chair, (ii) terminating Mr. Tyra’s employment, (iii) appointing Glenn Chamandy as CEO, and (iv) reassessing committee composition and committee chair roles. Additionally, the Reporting Persons find it troubling that the Board is deliberately attempting to diminish the Issuer’s strong historical results and growth prospects, as it has released letters stating that Mr. Chamandy struggled to find additional avenues of long-term organic growth; however, the Board has neglected to acknowledge that over the past few years, the Issuer’s earnings per share have increased substantially despite a challenging economic environment. Furthermore, the Rep

View Full Filing

View this SC 13D/A filing on SEC EDGAR