Fruit of the Loom Inc. and Parkdale America LLC on Wednesday said they have signed an agreement to form a strategic partnership to provide state-of-the-art technology in ring and open-end spinning of cotton and cotton blended yarns to be used in Fruit of the Loom’s underwear and casualwear products.
As part of the agreement, Fruit of the Loom will sell its U.S. yarn-spinning operations to Parkdale, which then will convert those plants to the latest technology in ring and open-end spinning.
Rick Medlin, president and chief executive officer of Fruit of the Loom, said, “Parkdale is one of the largest spinners in the world, and Fruit of the Loom has been purchasing yarns from them for many years. This new model will position us to provide our customers with even more innovative products with the great quality and value that consumers expect from the Fruit of the Loom brand.”
Fruit of the Loom employees currently working at the facilities will have the opportunity to remain as employees of Parkdale. It could not be learned where the facilities are located.
Anderson D. Warlick, vice chairman and ceo of Parkdale, said, “By working together with Fruit of the Loom, we can take advantage of our combined demand and invest in technology that will yield the highest quality at the lowest cost.”
The strategic partnership agreement is expected to close in the first quarter of 2015. A purchase price was not disclosed.
In addition to its signature brand, Fruit of the Loom’s brands include Vanity Fair, Spalding and Russell Athletic. Fruit of the Loom is a wholly owned subsidiary of Berkshire Hathaway.
Parkdale America, based in Gastonia, N.C., produces cotton and synthetic yarns in the U.S. and internationally. It is a subsidiary of Parkdale Mills Inc.