Shason, the global apparel retailer, has agreed to buy Canadian apparel company Pollack Textiles for $3,440 million, its largest-ever acquisition.
The deal will increase Shason’s global textile market share by 1.2% to 46% from 41.4%, according to a filing Friday with the U.S. Securities and Exchange Commission.
Shason also plans to increase its footprint in the U, Canada and Mexico, it said in a statement.
The purchase will give Shason greater control over its products and brands in addition to increasing its focus on global growth and customer service, the company said.
Shason has a market cap of $9.2 billion and is valued at $7.7 billion, according to Thomson Reuters data.
Shaker Heights, Ohio-based Pollack, based in Toronto, has a combined market cap $3 billion and $1.6 billion.
Pollack, which also makes garments for the apparel and home accessories industries, is one of the few textile companies that has an Asian market share of nearly 30%.
Pollack has grown to become a leader in apparel and consumer products.
The agreement is subject to regulatory approvals, which Shason said could take between four and eight months.
Shaker Heights is an independent city in Ohio that is home to more than 20,000 people.
Shakers’ acquisition of Pollack was part of a broader push to expand into new markets, including in the apparel, home goods and consumer electronics sectors.
Shakers has more than $7 billion in cash and short-term investments.
Shafer said the deal also strengthens Shakers’ ability to expand its global operations.
Shasons market has grown faster than the rest of the industry, which has grown at a compound annual growth rate of 7.2%, or 3.4% over the last year, according the S&P 500 index.
The company reported a $1 billion profit in 2016, including a $3 million gain in apparel sales.
Shavers chief executive officer Peter Boeser said in the statement the transaction will provide Shakers with a platform to further expand its product offerings and improve its global footprint, “while enhancing our core products and services, including apparel.”
Shakers, which owns more than 60 brands in over 150 countries, has said it plans to add about 15 new brands over the next few years.