Delta Apparel Completes Sale of The Game Branded Business
March 04 2015 - 4:05PM
Business Wire
Delta Apparel, Inc. (NYSE MKT: DLA) announced today that it has
completed the sale of its The Game branded collegiate headwear and
apparel business to David Peyser Sportswear, Inc., the owner of MV
Sport, Inc., for approximately $14.5 million paid in cash at
closing, with an additional $0.5 million payment contingent upon
certain conditions unrelated to the performance of the business.
The business consists of The Game branded products sold nationally
in college bookstores and through team dealers.
The transaction does not include accounts receivable and certain
undecorated apparel inventory, and Delta expects to realize
approximately $6 million from its collection or sale of these
assets. The approximately $21 million total value of the business
sold is more than $8.0 million above book value and represents
approximately 85% of revenue. Net of selling, transactional and
transitional expenses, Delta Apparel expects to realize a pre-tax
gain of approximately $6.0 million. Delta originally bought the
business in 2009 for $5.7 million, or about 20% of revenue, which
was less than the net value of the current assets acquired.
Delta’s Chairman and Chief Executive Officer, Robert W.
Humphreys said that in addition to further strengthening Delta’s
balance sheet, the sale will enable Delta to focus on areas of its
business that are more strategic to its long-term goals. “Our Salt
Life and corporate businesses currently operating within To The
Game, LLC, will not be affected by the sale of the collegiate part
of the business. While the sale has obvious benefits for Delta
Apparel, including allowing us to invest more capital in expansion
strategies for Salt Life and our other brands, we believe that The
Game’s branded products, which include the ‘Bar’ and ‘Circle’
trademarks, will make a strong addition to MV Sport’s wide range of
custom decorated apparel sold in college bookstores and other
markets.”
"We are excited to be adding The Game to our MV Sport business,"
said Josh Peyser, President of MV Sport. "The Game is a leading
headwear brand with strong consumer recognition in the collegiate
and team dealer markets, and combining it with our MV Sport product
lineup gives us a formidable presence in those markets. We are
looking forward to integrating The Game's highly professional
sales, customer support and design teams into the MV Sport
family."
Brad Payne, Managing Director at Kurt Salmon Capital Advisors in
Atlanta, Georgia, served as advisor to Delta Apparel, Inc. for this
transaction. Howard Feller, Partner at MMG Advisors, Inc. in New
York, served as advisor to David Peyser Sportswear, Inc.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its operating subsidiaries, 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.
About MV Sport
MV Sport® is a division of David Peyser Sportswear, Inc., a
family owned and operated business established in 1948. David
Peyser Sportswear is also the owner of the Weatherproof Garment
Company®, 32 Degrees®, Weatherproof Vintage® and Junior Gallery®
and holds the outerwear license for Tumi®. MV Sport is a leading
supplier of custom decorated apparel and accessories to the college
bookstore, destination resort, golf, military exchange, and
corporate markets. MV Sport is based in Bay Shore, New York. Its
headquarters facility houses state of the art embroidery and screen
printing embellishment equipment that is powered by over 4,800
solar panels.
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
will not be implemented.
Company Contact:Delta Apparel, Inc.Deborah Merrill, 864-232-5200
x6620Chief Financial OfficerorInvestor Relations Contact:Sally
Wallick, CFA, 404-806-1398investor.relations@deltaapparel.com
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