Gildan Activewear Inc. signed a definitive agreement to acquire Peds Legwear Inc. for $55 million, officials announced July 27.

The acquisition is subject to customary closing conditions and is expected to close before the end of August 2016.

Peds is a marketer of quality foot apparel and legwear products, including ladies no-show liners, socks and sheer and therapeutic hosiery sold mainly under the Peds and MediPeds brands to U.S. and Canadian retailers. The company currently generates annual sales of approximately $80 million supported by sourced production and a company-owned manufacturing and distribution facility in Hildebran, NC.

“The Peds brand comes with a strong heritage, particularly in the ladies category, and is a good, complementary addition to Gildan’s growing portfolio of brands,” said Glenn Chamandy, president and CEO of Gildan.

The acquisition is expected to create revenue growth opportunities by leveraging Gildan’s existing customer relationships to broaden the channels of distribution for the Peds and MediPeds brands and by extending these brands into Gildan’s other product categories, officials said. In addition, they noted that Peds’ current distribution into the footwear channel provides broader access in this channel for Gildan’s brands and product portfolio.

“This company was originally founded 80 years ago in Quebec and we are proud to have successfully built Peds and MediPeds into such strong brands,” said Michael Penner, CEO of Peds Legwear. “Gildan has had great success over the years building its manufacturing leadership and strong portfolio of brands and we feel it is well positioned to take the Peds brands to new heights.”