Art Gun Acquires DTG2Go Business
March 12 2018 - 7:00AM
Delta Apparel, Inc. (NYSE American:DLA), a leading provider of
basic and branded apparel, headwear and related accessories, today
announced that Art Gun, LLC, its wholly-owned subsidiary, has
acquired substantially all of the assets of TeeShirt Ink Inc. d/b/a
DTG2Go, a premium provider of digital, direct-to-garment printed
products.
Art Gun’s acquisition of the DTG2Go business
makes it a clear market leader in the direct-to-garment digital
print and fulfillment marketplace and accelerates Art Gun’s
geographic expansion. The integrated business will operate from
multiple locations in Florida as well as a location in Nevada
serving the western United States, with immediate plans to begin
production in our Fayetteville, North Carolina facility to service
the northeastern United States. With this acquisition, Art
Gun nearly doubles its revenue and capacity, broadens its product
line into posters, stickers and other items, and further enhances
service levels through quicker delivery capabilities both across
the United States and in over 100 countries worldwide. Delta
Apparel plans to change the name of Art Gun, LLC to DTG2Go, LLC and
market the consolidated digital print business under the DTG2Go
brand name.
Robert W. Humphreys, Chairman and Chief
Executive Officer of Delta Apparel, Inc., commented, “Art Gun’s
acquisition of the DTG2Go business is another example of our
continued focus on areas of our business where we expect high
growth opportunities. We see the digital print model
revolutionizing the way traditional retailers, e-retailers, and the
ad-specialty industry conduct business. Over the past five
years, DTG2Go has achieved notable success and we are excited to
have the talented DTG2Go personnel as part of our team focused on
further increasing our share of this growing market. We plan to
continue to invest in equipment and geographic expansion, and look
forward to the many opportunities for strong growth at DTG2Go.”
The purchase price for the transaction consists
of $16.35 million in cash and additional payments contingent on
certain performance targets. Delta Apparel expects this
acquisition to be immediately accretive to earnings and increase
revenue by approximately $7 million during the remainder of fiscal
year 2018. With the full year benefit of the acquisition in
fiscal year 2019, the contribution from DTG2Go is expected to
generate around $20 million in incremental revenue while being
approximately $0.25 accretive to per share earnings.
About Art Gun
Art Gun, LLC is a leader in the
direct-to-garment printing and fulfillment marketplace, with one of
the most highly-automated factory processes for delivering
on-demand, digitally printed apparel of all types as well as other
items. Built upon a robust backend digital supply chain and
infrastructure to scale with large company mindsets, Art Gun is the
perfect fit for ecommerce companies as well as the ad specialty,
promotional products and retail marketplaces. Orders ship from Art
Gun within 24 to 48 hours to consumers in over 100 countries
worldwide.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating
subsidiaries, M. J. Soffe, LLC, Salt Life,
LLC and Art Gun, LLC, is an international design,
marketing, manufacturing, and sourcing company that features a
diverse portfolio of lifestyle basic and branded activewear
apparel, headwear and related accessories. The Company
specializes in selling casual and athletic products across
distribution tiers, including specialty stores, boutiques,
department stores, mid-tier and mass chains, and the U.S.
military. The Company’s products are also made
available direct-to-consumer on its websites at www.saltlife.com,
www.coastapparel.com, www.soffe.com and www.deltaapparel.com.
The Company's operations are located throughout the United
States, Honduras, El Salvador, and Mexico, and it
employs approximately 7,500 people worldwide. Additional
information about the Company is available
at www.deltaapparelinc.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains “forward-looking”
statements that involve risks and uncertainties. Any number
of factors could cause actual results to differ materially from
anticipated or forecasted results, including, but not limited to,
the factors set forth in the "Risk Factors" contained in our Annual
Reports on Form 10-K filed with the Securities and
Exchange Commission. Except as may be required by
law, Delta Apparel, Inc. expressly disclaims any
obligation to update these forward-looking statements to reflect
events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events.
Company Contact:
Deborah MerrillChief Financial
Officer(864) 232-5200 x6620
Investor Relations Contact:
Sally
Wallick, CFA(404)
806-1398investor.relations@deltaapparel.com
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