LONDON, UK / ACCESSWIRE / March 14, 2018 / Active-Investors.com has just released a free research report on Delta Apparel, Inc. (NYSE: DLA). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=DLA as the Company's latest news hit the wire. On March 12, 2018, the Company announced that its wholly-owned subsidiary, Art Gun, LLC, has acquired all of the assets of TeeShirt Ink Inc., for approximately $16.35 million in cash and additional future payments are contingent on certain performance targets. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Delta Apparel most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=DLA
TeeShirt Ink is a premium provider of digital, direct-to-garment printed products, and it is doing business as DTG2Go.
Deal Details
- Delta Apparel plans to change the name of Art Gun, LLC to DTG2Go, LLC and market the consolidated digital print business under the DTG2Go brand name.
- The merged business will operate from multiple locations in Florida as well as a location in Nevada serving the western United States, with immediate plans to begin production in Fayetteville, North Carolina facility to service the northeastern United States.
- The Company expects this acquisition to be immediately accretive to earnings and increase revenue by approximately $7 million during the remainder of the fiscal year 2018.
- With the full year benefit of the acquisition in the fiscal year 2019, the contribution from DTG2Go is expected to generate around $20 million in incremental revenue while being approximately $0.25 accretive to per-share earnings.
Strategic Benefits of the Deal
The acquisition of the DTG2Go business makes Art Gun a clear market leader in the direct-to-garment digital print and fulfillment marketplace and accelerates the latter's geographic expansion. With this acquisition, Art Gun nearly doubles its revenue and capacity, broadens its product line into posters, stickers and other items, and further enhances service levels through quicker delivery capabilities both across the United States and in over 100 countries worldwide.
Delta Apparel to Invest in Equipment and Geographic Expansion of DTG2Go
Commenting on the acquisition, Robert W. Humphreys, Chairman and Chief Executive Officer of Delta Apparel, stated that Art Gun's acquisition of the DTG2Go business is another example of the Company's continued focus on areas where it expects high growth opportunities. The digital print model is revolutionizing the way traditional retailers, e-retailers, and the ad-specialty industry conduct business.
Robert added that Delta Apparel plans to continue to invest in equipment and geographic expansion and look forward to the many opportunities for strong growth at DTG2Go.
Delta Apparel's Last Acquisition Deal
The Company's last acquisition agreement was signed in August 2016. Delta Apparel acquired substantially all the assets of COAST Apparel. The COAST Apparel brand integrated the coastal experience of weekends and summers at the beach with everyday life throughout the year. Beginning with just a men's polo shirt, COAST Apparel has since expanded into a full line of traditional, sports-casual attire, headwear and accessories.
About Delta Apparel, Inc.
Headquartered in Duluth, Georgia, Delta Apparel. specializes in the design, merchandising, sales, and marketing of a variety of lifestyle branded activewear, apparel, and headwear for men, women, juniors, youth, and children at a wide range of price points. Delta Apparel became an independent public company in July of 2000.
About Art Gun, LLC
Art Gun, LLC, a subsidiary of Delta Apparel Inc., is a leader in the direct-to-garment printing and fulfillment marketplace, with one of the most highly-automated factory processes for delivering on-demand, digitally printed apparel of all types as well as other items. Built upon a robust backend digital supply chain and infrastructure to scale with large company mindsets, Art Gun is the perfect fit for e-commerce companies as well as the ad specialty, promotional products, and retail marketplaces.
Stock Performance Snapshot
March 13, 2018 - At Tuesday's closing bell, Delta Apparel's stock climbed 3.61%, ending the trading session at $19.80.
Volume traded for the day: 50.25 thousand shares, which was above the 3-month average volume of 18.69 thousand shares.
Stock performance in the last month - up 3.77%; and past twelve-month period - up 23.44%
After yesterday's close, Delta Apparel's market cap was at $144.14 million.
Price to Earnings (P/E) ratio was at 13.18.
The stock is part of the Consumer Goods sector, categorized under the Textile-Apparel Clothing industry.
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