Gildan Activewear had a roller coaster week, purchasing a hosiery manufacturer and boosting its guidance for the third quarter, then experiencing a fire in one of its San Marcos, Nicaragua sewing facilities. No employees were hurt in the fire and the economic affects of it are expected to be negligible.

Gildan has agreed to purchase 100% of the equity of Kentucky Derby Hosiery Co., Inc., based in Hopkinsville, Kentucky, with a total purchase price of approximately $45 million. Consideration for the equity component of the purchase price will be paid in cash on closing, with the exception of approximately $500,000, which will be paid in GIL shares. The acquisition is expected to close in early July at the start of the company’s fiscal fourth quarter. Kentucky Derby has annual sales in excess of $130 million, primarily at private label mass-market retailers. Based on current levels of profitability, the acquisition will initially be non-accretive to Gildan’s earnings, but once integration is complete, Gildan expects the acquisition to enhance annual EPS by approximately 30 cents.

The company also announced that its Q3 performance is tracking better than expected and as such, raised its diluted EPS guidance to 67 cents per share. In conjunction with that increase, Gildan now expects full year diluted EPS to be $2.00, up from previous guidance of $1.96.