Delta Apparel Anticipates Sale of The Game Branded Business
GREENVILLE, S.C.--(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.
Deborah Merrill, 864-232-5200 x6620
Chief Financial Officer
Investor Relations Contact:
Sally Wallick, CFA, 404-806-1398
Source: Delta Apparel, Inc.
Released February 20, 2015