Delta Apparel, Inc. Delta Apparel, Inc.

Strategic Initiatives

Becoming a Diversified Branded Apparel Company

At Delta Apparel, we've become a diversified branded apparel company through acquisitions and organic expansion, adding well-recognized brands to our portfolio, expanding our product offerings and broadening our distribution channels and customer base.

By tracking market trends and customer behavior, we're able to stay nimble and keep up with the ever-changing marketplace. We execute acquisitions when it's strategic to do so and exit markets that do not fit our long-term growth and profit goals.

In addition, in order to provide growth and improved profitability, at times we implement strategic initiatives across the entire company that are aimed at saving costs, gaining efficiencies, growing our profits and providing better services to our customers.

A Historical Timeline of Strategic Initiatives

Present

October 08, 2018

SSI Acquisition

On October 8, 2018, our wholly-owned subsidiary, DTG2Go, LLC, acquired substantially all of the assets of Silk Screen Ink, Ltd. d/b/a SSI Digital Print Services, a leading provider of digital print services.

The acquisition of SSI Digital Print Services increases our digital print capacity and enhances our strategic footprint so that we now service over 90% of the U.S. population with 1 to 2 day shipping. Our vertically-integrated platform utilizes Delta Apparel's broad range of blank garments providing customers with a seamless supply chain for on-demand, digitally printed garments fulfilled directly to their consumers. This level of customer offering and consumer reach is unmatched in the digital print space.

March 09, 2018

DTG2Go Acquisition

On March 9, 2018, our wholly-owned subsidiary, Art Gun, LLC, purchased substantially all of the assets of TeeShirt Ink Inc. d/b/a DTG2Go, a premium provider of digital, direct-to-garment printed products and subsequently changed its name to DTG2Go, LLC. Our acquisition of the DTG2Go business makes us the most comprehensive direct-to-garment digital print and fulfillment provider in the world.

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. We plan to continue to invest in equipment and geographic expansion, and look forward to the many opportunities for strong growth at DTG2Go."

2018

March 31, 2017

Divestiture of Junkfood Clothing

On March 31, 2017, we completed the sale of our vintage-inspired, licensed-graphics tee business, Junkfood Clothing Company, to JMJD Ventures, LLC.

Delta Apparel's Chairman and Chief Executive Officer, Robert W. Humphreys commented, "The Junk Food brand has broadened its consumer reach and awareness, and more than doubled its revenue since we acquired it in 2005. While we have enjoyed nurturing this brand over the years, the changing retail environment has made it more challenging to be a niche player in the licensed-graphics space. We are pleased to have the opportunity to sell Junk Food and further reduce our reliance on licensed properties."

2017

August 30, 2016

Coast Apparel, LLC Acquisition

On August 30, 2016, we purchased substantially all of the assets of COAST Apparel ("Coast"). The Coast acquisition continues our strategy of building lifestyle brands that take advantage of our creative capabilities, direct-to-consumer infrastructure, vertical manufacturing platform and sourcing competencies.

COAST Apparel is headquartered in Greenville, SC and is included in our branded segment.

2016

March 02, 2015

Divestiture of The Game

On March 2, 2015, we completed the sale of The Game branded collegiate headwear and apparel business to David Peyser Sportswear, Inc., the owner of MV Sport, Inc. The business sold consisted of The Game branded products sold nationally in college bookstores and through team dealers.

2015

August 27, 2013

Salt Life Acquisition

On August 27, 2013, our wholly-owned subsidiary, To The Game, LLC, purchased substantially all of the assets of Salt Life Holdings, LLC, including all of its domestic and international trademark rights in the Salt Life brand. Prior to the acquisition, Delta Apparel, Inc. had a licensing agreement as an exclusive marketer of Salt Life, which gave Delta Apparel exclusive rights for all apparel, headwear, decals and bags.  Footwear was added in 2012. In addition, the Company operated the Salt Life's e-commerce store at www.saltlife.com.

“The Salt Life acquisition opens up another exciting chapter in the history of Delta Apparel, Inc.,” commented Robert W. Humphreys, Chairman and Chief Executive Officer. “This continues our strategy of building lifestyle brands that can take advantage of our creative capabilities, vertical manufacturing platform and international sourcing competencies. Since becoming the exclusive licensee for Salt Life apparel and other categories in 2011, Delta Apparel has broadened its core consumer appeal by developing authentic and compelling products that cater to a host of ocean and beach enthusiasts. 

Salt Life, LLC is headquartered in Columbus, GA and is included in our branded segment.

2013

December 28, 2009

Art Gun Acquisition

Through its innovative technology or "virtual art studio", Art Gun provides shoppers the ability to design apparel products by choosing different styles, colors and graphics to create their one-of-a-kind customized garment. Art Gun's unique software application can be fully integrated into any company's e-commerce platform, allowing Art Gun to manage the entire process from web design and integration to digitally printing and shipping the garment. The total purchase price included $1 million paid in cash at closing and contingent payments due to the Art Gun sellers if performance targets are met by Art Gun during each of the fiscal years beginning on July 4, 2010 and ending on July 1, 2017. Art Gun is headquartered in Miami Lakes, Florida and is reported within our branded segment. 

Robert W. Humphreys, Chairman & Chief Executive Officer of Delta Apparel, Inc., commented, “We are excited to acquire what we think is one of the most compelling new ideas to emerge for the retail industry in some time. Art Gun dovetails with our existing operations and provides us with a direct entrée into what we believe is a $1 billion customized apparel market. At the same time, Art Gun brings with it exciting technology, expertise in digital printing and a strong management team that we believe provides new growth opportunities for Delta Apparel, Inc.”

March 29, 2009

To The Game Acquisition

On March 29, 2009, our wholly-owned subsidiary, To The Game, LLC, purchased substantially all of the assets of Gekko Brands, LLC, a premier supplier of licensed and decorated headwear sold under the brands of The Game™ and Kudzu™. The Game™ and Kudzu™ have extensive license agreements including most major colleges and universities, motorsports properties, Churchill Downs, and various resort properties. The Game™ was founded in 1986 as a premier headwear supplier to colleges and universities. Its founder, Neil Stillwell, remains a vital and active leader in the business. The Kudzu™ brand was formed in 1993 to design, import and sell headwear and jackets to NASCAR teams just as The Game™ had done for colleges.

The purchase of this business is in keeping with our strategy of acquiring brands, licensed properties and operating companies that expand our channels of distribution. We believe these brands, combined with the sourcing, marketing, art, and distribution skills of To The Game management, provide significant growth opportunities for Delta Aparel, Inc. The acquisition was financed through our asset-based secured revolving credit facility. No goodwill or intangibles were recorded on our financial statements in connection with the acquisition.

2009

October 02, 2006

FunTees Acquisition

On October 2, 2006, we completed the acquisition of FunTees, Inc. Founded in 1972, FunTees is in the business of designing, manufacturing, marketing and selling private labeled custom knit t-shirts primarily to branded sportswear companies. We believe that the strength of FunTees is its flexibility to custom-manufacture products in a variety of garment styles, fabrics and colors and its ability to decorate and package products for retail in its offshore facilities. We integrated the FunTees textile operations into our existing manufacturing platform to improve manufacturing efficiencies and created cost savings in our combined business.

2006

October 03, 2005

Intensity Athletics Acquisition

On October 3, 2005, our wholly-owned subsidiary, M. J. Soffe, purchased substantially all of the assets of Intensity Athletics, Inc. and its business of designing, manufacturing, and marketing athletic apparel. Intensity Athletics began outfitting teams in 1990 on the belief that better garments in sports will help free up an athlete to perform to his/her highest potential. Intensity products are primarily sold through team dealers and sporting goods stores nationally. 

The Intensity product line is sold through the M.J. Soffe business unit and is reported within our branded segment.

August 23, 2005

Junkfood Clothing Acquisition

On August 23, 2005, we acquired substantially all of the assets of Liquid Blaino Designs, Inc. d/b/a Junkfood Clothing. The Junk Food brand started in 1998 as a t-shirt line with nostalgic licenses such as Twister, Candy Land and My Little Pony. Over the years, it has experienced impressive growth through innovative designs and a great sense of style.

The total purchase price for Junkfood Clothing consisted of $20 million of cash (subject to a post-closing adjustment based on the actual working capital purchased), a $2.5 million seller promissory note, and contingent payments with respect to each of the four fiscal years following closing, payable if certain performance targets were met. 

Robert W. Humphreys, President and CEO, commented, “We look forward to having Junkfood Clothing join our expanding business operations. The purchase of Junkfood keeps with our strategy of acquiring profitable apparel operations that expand our channels of distribution.”

2005

October 03, 2003

M.J. Soffe Acquisition

On October 3, 2003, Delta Apparel completed the acquisition of all of the outstanding capital stock of M.J. Soffe Co., which manufactures, markets, and sells casual and athletic apparel. M.J. Soffe Co., a North Carolina corporation, was founded in 1946 and has a long history of profitability and growth in the branded activewear market. The Soffe® brand is well recognized at sporting goods retailers and department stores. In addition, Soffe supplies college bookstores and produces activewear products for the U.S. military.

In connection with the acquisition, we paid approximately $43.5 million in cash, issued a promissory note to the selling individuals in the aggregate principal amount of $8.0 million and paid approximately $8.5 million to satisfy all outstanding bank debt of M. J. Soffe Co. Also, additional amounts were payable to the selling individuals in cash if specified financial performance targets were met, and approximately $4.8 million was paid related to this.

Soffe is headquartered in Fayetteville, North Carolina and is included in our branded segment.

2003