Delta Apparel Acquires Clothing Manufacturer
July 6, 2010
Georgia-based supplier Delta Apparel Inc. (asi/49172) has signed a letter of intent to acquire the net assets of The Cotton Exchange, a North Carolina-based manufacturer. The deal, which includes the purchase of inventory and other fixed assets as well as the assumption of certain liabilities, is expected to close by July 15. “We are excited about the acquisition of The Cotton Exchange as it continues our strategy of growing the company’s business within the college bookstore market and further strengthens our military and retail channels,” said Robert Humphreys, CEO of Delta Apparel. “This business provides us additional U.S. screen print and embroidery capacity, further enhancing our speed to market initiatives.”
The Cotton Exchange, which was founded in 1984, will keep its headquarters in Wendell, NC, and all of its current operations will continue. Each of the roughly 300 workers at The Cotton Exchange will be offered employment following the acquisition, according to a statement from Delta Apparel. The Cotton Exchange will operate as a division within M. J. Soffe LLC, which is a subsidiary of Delta Apparel. “We believe The Cotton Exchange's reputation for service and strong relationships with its customers is exactly what Soffe needs to realize its full potential within the college bookstore channel,” said Ken Spires, president of M. J. Soffe. “All of us at M. J. Soffe are looking forward to the new relationship with The Cotton Exchange.”
Delta Apparel expects The Cotton Exchange to add approximately $25 million in sales to its company. Delta Apparel employs nearly 7,000 people worldwide, supplying its products to both the promotional and retail markets.