NEW YORK ( TheStreet) -- Gildan Activewear ( GIL)is trading higher on Tuesday, following its announcement that it will acquire Gold Toe for $350 million.

The deal, which according to the company should close "imminently," is expected to more than double Gildan's revenue in the sock business. Gold Toe sells athletic, casual and dress socks to retailers, national chains and other department and specialty stores in the U.S. Other than its namesake line, its brands include Silver Toe, GT, Auro, PowerSox and All Pro. Gold Toe is also the exclusive U.S. licensee for Under Armour ( UA) and New Balance Athletic Shoe.

Gildan said the acquisition will "significantly expand and diversify its customers base and channels of distribution within the U.S. retail market."

Gold Toe's revenue hit more than $280 million in 2010.

--Written by Jeanine Poggi in New York.

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