Delta Apparel Anticipates Sale of The Game Branded Business
February 20 2015 - 4:05PM
Business Wire
Delta Apparel, Inc. (NYSE MKT: DLA) announced today that its
wholly-owned subsidiary, To The Game, LLC, previously entered into
a letter of intent to sell its The Game branded collegiate headwear
and apparel business to David Peyser Sportswear, Inc., the owner of
MV Sport, Inc. MV Sport was founded in 1948 and has grown to become
a leading supplier of custom decorated apparel in the college
bookstore and other markets.
“We are pleased to have reached an agreement to sell The Game
branded headwear and apparel business to an established and
growth-minded company such as MV Sport,” commented Delta Apparel,
Inc. Chairman and Chief Executive Officer Robert W. Humphreys. “Our
Salt Life and corporate business currently operating within To The
Game, LLC, are not being impacted by the sale of the collegiate
part of the business. The sale of The Game will allow us to focus
on other areas of our business that are more strategic to our
long-term goals.”
The approximately $25 million revenue business being sold
consists of The Game branded products sold nationally in college
bookstores and through team dealers. The Game’s signature headwear
designs include “The Bar” family of trademarks and “The Circle”,
which are well recognized by consumers across the country.
The contemplated transaction is expected to close within the
next several weeks and should result in an appreciable gain to net
book value. The letter of intent is non-binding and the transaction
is subject to the execution of a definitive asset purchase
agreement, the obtainment of necessary approvals, and other
customary conditions.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating subsidiaries, M.
J. Soffe, LLC, Junkfood Clothing Company, To The Game, 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 and headwear. The Company
specializes in selling casual and athletic products across
distribution tiers, including specialty stores, boutiques,
department stores, mid-tier and mass chains, college bookstores and
the U.S. military. The Company’s products are made available
direct-to-consumer on its websites at www.soffe.com,
www.junkfoodclothing.com, www.saltlife.com and
www.deltaapparel.com. The Company's operations are located
throughout the United States, Honduras, El Salvador, and Mexico,
and it employs approximately 6,900 people worldwide. Additional
information about the Company is available at
www.deltaapparelinc.com.
Cautionary Note Regarding Forward Looking
Statements
Statements and other information in this press release that are
not reported financial results or other historical information are
forward-looking statements subject to the safe harbor created by
the Private Securities Litigation Reform Act of 1995. These are
based on our expectations and are necessarily dependent upon
assumptions, estimates and data that we believe are reasonable and
accurate but may be incorrect, incomplete or imprecise.
Forward-looking statements are also subject to a number of business
risks and uncertainties, any of which could cause actual results or
actions to differ materially from those set forth in or implied by
the forward-looking statements. The risks and uncertainties
include, among others, those described from time to time in our
reports filed with the Securities and Exchange Commission.
Accordingly, any forward-looking statements do not purport to be
predictions of future events or circumstances and may not be
realized. Further, any forward-looking statements are made only as
of the date of this press release and we do not undertake publicly
to update or revise the forward-looking statements even if it
becomes clear that any such statements or any projected results
will not be realized or that any contemplated strategic initiatives
or transactions will not be implemented or consummated.
Delta Apparel, Inc.Company Contact:Deborah Merrill, 864-232-5200
x6620Chief Financial OfficerorInvestor Relations Contact:Sally
Wallick, CFA, 404-806-1398investor.relations@deltaapparel.com
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