Delta Apparel, Inc. to Acquire On-Demand Customized Graphics Apparel Business
GREENVILLE, S.C.--(BUSINESS WIRE)-- Delta Apparel, Inc. (NYSE Amex: DLA) has signed a letter of intent and expects to acquire substantially all of the net assets of Art Gun Technologies, LLC by December 31, 2009.
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.
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 entree 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."
Art Gun began as a concept in January 2009. During the following nine months, Billy Koorse, Scott Valancy and Evan Koorse took this idea from concept to reality, launching the first Art Gun "Design a Tee Studio" in October 2009. Art Gun is currently in discussions with other large companies with strong e-commerce platforms for utilization of its software and services.
Billy Koorse, Chief Executive Officer of Art Gun Technologies, LLC, commented, "We believe that Delta shares Art Gun's vision of becoming a market leader in customized apparel through digital printing. We see clear synergies between our companies that should facilitate Art Gun's continued growth and success in the future."
The closing of the acquisition is subject to customary closing conditions. Art Gun is in its infancy, and the Company anticipates the business will not have significant revenue during at least the first twelve months after acquisition. The future impact of the acquisition on the Company's financial results will depend, among other things, on Art Gun's ability to attract and retain additional customers.
About Delta Apparel, Inc.
Delta Apparel, Inc., along with its wholly-owned subsidiaries, M. J. Soffe, LLC, Junkfood Clothing Company and To The Game, LLC, is an international design, manufacturing, sourcing and marketing company that features a diverse portfolio of high quality branded and private label activewear apparel and headwear. The Company specializes in selling a variety of casual and athletic products through most distribution channels for these types of goods. Its products are sold to specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, screen printers, and private label accounts. In addition, certain products are sold to college bookstores and to the U.S. military. Its products are also available direct to consumers on its websites at www.soffe.com, www.junkfoodclothing.com, and www.deltaapparel.com. The headwear products can be viewed at www.2thegame.com. The Company's operations are located throughout the United States, Honduras, El Salvador, and Mexico, and it employs approximately 6,500 people worldwide. Additional information about the Company is available at www.deltaapparelinc.com.
Statements and other information in this press release that are not reported financial results or other historical information are forward-looking statements. 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 to differ materially from those set forth in or implied by the forward-looking statements. The risks and uncertainties include, among others, the general U.S. and international economic conditions; changes in consumer confidence, consumer spending, and demand for apparel products; the ability of our brands and products to meet consumer preferences within the prevailing retail environment; the financial difficulties encountered by our customers and higher credit risk exposure; the competitive conditions in the apparel and textile industries; changes in environmental, tax, trade, employment and other laws and regulations; the uncertainty of raw material and energy prices; changes in the economic, political and social stability of our offshore locations; the relative strength of the United States dollar as against other currencies; and other risks 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. We do not undertake publicly to update or revise the forward-looking statements even if it becomes clear that any projected results will not be realized.
Source: Delta Apparel, Inc.
Released December 16, 2009